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Masternode

Masternode

A masternode is a special type of node 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.

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

Name
Symbol

BitSend

BVSD

Blocknet

BLOCK

Crown

CRW

DASH

Dash

Diamond

DMD

Scams

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.

Timeline

Further reading

Title
Author
Link
Type
Date

What are Masternodes? Complete Beginner's Guide

William M. Peaster

Web

What Is A Masternode And How Is It Useful For Cryptocoin Investors

Sudhir Khatwani

Web

Documentaries, videos and podcasts

Title
Date
Link

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

References

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