Master Nodes! All About them! Dash~PIVX and many more!steemCreated with Sketch.

in bitcoin •  last year

With the recent hype of Chaincoin and Exclusivecoin, you might have wondered what's behind it and what about it.The common thing between those two cryptocurrencies is a master node.The most known Cryptocurrencies having a masternode are Dash, Chaincoin, PIVX, Crown, Exclusivecoin and Transfercoin.

Coins Graph.PNG

What is a Masternode?

A masternode helps secure the community, relay transactions across networks and in some instances gives you the option to participate in the governance.More masternodes improve the decentralization of a cryptocurrency,therefore if you believe in one of the coins and are not driven by the gains, it's always good to help the community by hosting a masternode.

What are the rewards?

The financial rewards are usually a percentage of the blockreward, for instance dash offers 45% block reward on any block. However the more nodes the less your returns since masternodes are selected from the MN list (for MasterNode) by deterministic order (the one that got it's payment the most time ago and has been in the list enough time at the same time).The block reward for dash is around 3.6 Dash.

What do you need to setup a masternode?

Let's take dash for instance, you need:
-Proof of Ownership: 1,000 Dash
-A server or VPS installed with linuex
-A dedicated IP address
also you need some hardware with the following requirements:
-CPU 2GHZ
-RAM: 2GB
-Disk 16 GB
-Network: 1TB/month

So if you were considering a master node and do not have 170,000$ for Dash or any other requirement you can check some of the other alternatives detailed below:

Dash:
Price: 170$
Market Cap: 1,267,477,768$
POO # :1,000 Dash
Total Investment: 170,000$
Number of MN : 4,000
Reward: 45% of block reward.

ChainCoin:
Price: 6.7$
Market Cap: 100,688,599$
POO # :1,000 CHC
Total Investment: 6,700$
Number of MN : 1,288
Reward: 25% of block reward.

PIVX:
Price: 1.76$
Market Cap: 94,674,419$
POO # :10,000 PIVX
Total Investment: 17,600$
Number of MN: 1,991
Reward: Variable,depends on number of masternodes to staking nodes.

Crown:
Price: 0.997$
Market Cap: 14,341,420$
POO # :10,000 CRW
Total Investment: 9,997$
Number of MN : 1,100
Reward: 45% of block reward.

Masternodes increase the value of coins since the money invested in masternodes offers stability to the coin,in addition masternodes improve and secure the community.Take a look below at ChainCoin masternodes around the globe
MasterNode.PNG

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Good breakdown of Master Nodes. I think the master nodes ads another element to a coin. I believe long term it is a good thing for these coins.

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Very True, it's like people are not only holding the coins (Trading or Investing) but contributing to the advancement and making gains at the same time.I'd like to call it active investment

Everything minnows need to know about masternodes with insightful details and examples. Thanks for sharing this! * Resteemed *

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Thanks mate, love your art.Keep it coming!

One important vector in passive income investing with masternodes is when to invest. Buying a masternode for $1,000 which yields 10% will give an ROI of $100 but if that masternode goes 5x (i.e $5000) and still gives an ROI of 10% that would be $500. Investing in the established ones is safe, but a share of your portfolio can also be focused on low cap http://nodesofvalue.com/low-cap-masternodes-with-potential/ and upcoming masternodes http://nodesofvalue.com/upcoming-masternodes/. The market might not have priced these in to their full potential. Do you own research! #DYOR