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Previously it was necessary to keep all state in RAM for acceptable performance. With many of the non-consensus social features now supported in hivemind instead of needing to be directly in Steem, it is now possible to keep all state for Steem on disk. That is why the RAM requirement has been dramatically reduced.

Ah I gotcha. So -- You'd still need about 64GB RAM to run a full-node? Huge improvement, no doubt -- but it's still a bit big....

Or am I getting mixed up with the requirements of Full Nodes and Witness Nodes? Witness nodes are smaller, yeah?

No, you can use 64GB servers, not a single 64GB server.

Yes, the requirements for a witness node are much lower.

If you haven't seen our post about MIRA, you should check that out - that is a feature in development that is aimed to reduce requirements for all nodes, even the smaller consensus nodes (such as witnesses and seeds).