Does P2Pool need a full Monero node running on the same machine?

No. P2Pool needs access to a fully synced Monero node, but that node does not need to run on the same machine. You can run the node locally, put it on another computer you control, or use a compatible remote node.

What P2Pool actually needs

P2Pool is a mining pool without a central operator. It uses a Monero node—the software called monerod—to get current blockchain information and submit any Monero blocks your mining helps find.

The blockchain is Monero’s shared record of transactions. Your node checks that record against Monero’s rules.

P2Pool needs two kinds of access to the node:

• RPC: An interface that lets P2Pool request information and submit blocks.
• ZMQ notifications: A feed that quickly tells P2Pool when the Monero blockchain changes.

That second connection matters. A public node that works with your wallet might not provide the notifications P2Pool needs. “Remote node available” does not automatically mean “P2Pool compatible.”

Keeping the node on another computer

You can leave monerod running on a home server or spare computer and run P2Pool on your mining computer. Tell P2Pool the node’s network address and the relevant connection ports.

This setup can be useful if your mining computer has limited storage. The computer running the node stores and checks the blockchain; your P2Pool computer does not need its own separate Monero blockchain copy.

For a reliable setup:

• Keep the node fully synced and reachable whenever P2Pool is mining.
• Enable the node’s ZMQ publisher.
• Allow the required connections through your firewall.
• Use a trusted local network or a private, encrypted connection between your machines.

Do not expose unrestricted node controls to the public internet just to make the connection work. Follow the current P2Pool setup instructions for the required node settings and access restrictions.

Using someone else’s remote node

A compatible third-party node can save you disk space and the work of maintaining monerod. However, you give up some control over reliability and privacy.

If that node goes offline, falls behind, blocks your requests, or stops offering the needed services, your P2Pool instance cannot work properly through it. Slow notifications can also leave you working on outdated mining information.

The node operator can see your connecting IP address. Running your own node avoids depending on someone else to supply your view of the Monero network, though it does not make all your network activity invisible.

For regular mining, your own node on another machine is often a better compromise than relying on a public service.

You do not need an unpruned blockchain

“Full node” does not necessarily mean keeping every byte of historical blockchain data.

A pruned node checks Monero’s rules but discards some older data to reduce storage use. P2Pool can work with a fully synced pruned Monero node. Pruning saves disk space, although the node still needs to download and verify the blockchain during its initial sync.

Also, several mining computers can send their work to one P2Pool instance. You do not need a separate Monero node for every miner.

The bottom line

The requirement is a reliable connection to a synced, compatible Monero node—not having everything on one machine. Running your own node locally or elsewhere on your private network gives you more control; a third-party node can work if it provides both the required RPC access and ZMQ notifications.