Let’s Talk About Masternodes.
Masternodes are more than just another way to invest in an alt coin. They allow you to be an integral part of the improvement and advancement of that coin.
By holding a masternode you have the ability to vote on proposals meant to improve the coin. You also are taking an amount of that coin out of circulation, this helps to increase demand by reducing the supply.
The very concept of masternodes has long term value in its core. The investors who have masternodes are the investors who have put their money where their mouth is and have chosen to commit to that coin for the long term.
Holding a masternode benefits the investors.
In addition to seeing capital gains by just holding the coins, you will also be paid in that coin. Payouts can occur anywhere from multiple times a day, to weekly or bi-weekly payouts. If you invested in a master node before the coin really starts to take off then your profits can increase exponentially.
I should note that there are some potential downsides with masternodes that you should be aware of before taking part in one.
- They are vulnerable to DoS attacks if they are hosted on weak hosting accounts.
- If you invest in a master node at the peak price, the chance you’ll get a decent return of investment can be bleak if the price drops.
- The more masternodes that are created means a reduced revenue.
However, more masternodes also means a better spread of the servers, which increases the security of the coin. More master node holders also means an increase in votes for proposals that can benefit the coin.
There are only a handful of coins that offer masternodes, I suggest looking into:
Dash, PIVX and Crown.
The price of Dash increased roughly 300% in the past month and has been holding steady just around $100 per coin;
But it’s PIVX and Crown that have been making huge positive moves most recently.
If you’re looking for a coin that offers a masternode and is starting to gain traction, I suggest checking out PIVX and Crown on your own and decide for yourself.
The Dash masternode's primary function is to carry out the anonymization phase of the Darksend protocol and to validate transactions almost instantly.
Dash also allows for third party master node set up, so you don’t necessarily need to run your very own server to also own a master node.
The PIVX masternode runs the same wallet software on the same blockchain to provide extra services to the network. These services include:
- Anonymization increased privacy of transactions
- Instant transactions
- A decentralized governance
- A decentralized budgeting system
- Immutable proposal and voting systems.
PIVX is often compared to Dash since it is in fact a forked version of the dash blockchain.
However PIVX really strives to prioritize a community designed governance model, and is the only pure proof of stake coin that offers master nodes.
Like PIVX, Crown includes capabilities of both the DASH and Bitcoin protocols. The most important differences from Bitcoin are that Crown confirms transactions more quickly, and has an additional layer of security provided by Throne network masternodes. The most important difference from DASH is that Crown can be merge-mined with Bitcoin so that it has the capability to leverage the security provided by the bitcoin network’s hashpower.
Users with 10,000 CRW can run the Crown program, called Thrones in server mode (or masternode). These throne servers provide additional security to the network, but they also could represent a distributed pool of computing capacity for running applications. For now though, 45% of the block confirmation rewards go to the throne servers for their role in confirming transactions on the network through a modified proof-of-stake algorithm.