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When I was working with Proof of Authority and Ethereum I recall there was a minimal number of nodes (which I think was two).

For PoW one node was definitely possible.

For testing can setup just one node with EOS? I am unsure of the requirements under dPOS.

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Yes, one BP is enough.

$ nodeos --producer-name eosio --enable-stale-production 

should be enough to start producing blocks on a chain with one node.

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