Masternodes, also known as bonded validator systems, are special types of nodes in a peer-to-peer network which guarantees a minimum level of performance and functionality to perform certain tasks in exchange for a financial incentive. A master node is a full cryptocurrency node or cryptocurrency wallet that contains a full copy of a blockchain and acts similar to a server on a decentralized network.
Masternodes are useful for performing special functions and have special features made possible through containing a full copy of the blockchain, these include: increasing transaction privacy, performing instant transactions, governance and voting participation, and enabling a budgeting and treasury system on the blockchain.
There are three types of masternodes which include masternodes using different consensus mechanisms; proof-of-work (POW), proof-of-stake (POS), and a hybrid model of POW and POS.
Cryptocurrencies using masternodes
Due to the nature of masternodes rewarding users for owning them, cryptocurrencies using masternodes have the potential to be scams because the coins may offer no utility, have unfair coin specifications, unfair pre-mining, unfair presale schemes, unclear roadmaps, and/or unknown developers.
Documentaries, videos and podcasts
Masternodes Explained For Dummies! "Passive Income" or Waste of Time?
August 7, 2018
What is a Masternode and How to Profit Off it? [$Dash/$Pivx/$Excl]
June 21, 2017
What is a Masternode?
December 4, 2017
- BlockchainA blockchain is an append-only digital ledger storing a set of time-ordered transactions grouped in blocks that are linked together using cryptographic hashes.
- CryptocurrencyA cryptocurrency (or crypto currency) is a digital asset designed to work as a medium of exchange using cryptography to secure the transactions and to control the creation of additional units of the currency. Cryptocurrencies are a subset of alternative currencies, or specifically of digital currencies.
- Blockchain and cryptocurrencyTopics related to blockchain and cryptocurrency.
- PIVXPIVX is a cryptocurrency utilizing masternodes and focusing on privacy.
- NEMNEM is a peer-to-peer cryptocurrency platform written in Java.
- Pura (cryptocurrency)Pura is a cryptocurrency with private transactions and incentivized masternodes.
- Waves PlatformWaves is a digital currency platform that lets users create their own cryptocurrencies.
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