MASTERNODES VS MINING: WHAT IS BETTER?
With the advent of cryptocurrencies in the modern world, each interested person has the opportunity to receive coins by mining, buying special equipment for this, or to acquire cryptocurrencies on exchanges.The first possibility to earn on cryptocurrencies, solving complex mathematical problems with the help of GPU GPUs or specialized ASIC chips, the latter — speculating at the course jumps of the cryptocurrency.
Maternodes Passive Income
What is mining?
Probably everyone has already heard about the mining, even those who have absolutely nothing to do with this concept. But repetition is the mother of learning. So, mining is the generation of new blocks in the blockchain network , where the consensus is achieved thanks to the protocol PoW (Proof of Work). To master the protocol PoW requires high computing power of the computer, as well as mining software for solving complex mathematical problems. In exchange for their efforts spent in trying to solve complex mathematical calculations, network users receive a reward in the form of coins.
If you dare to mining, you should think about the following:
- Complexities associated with mining;
- Can you mine other cryptocurrencies?
- How to mine: on the graphics processor GPU and specialized ASIC chips;
- Reliable Internet;
- A reliable cooling system that will prevent the process of overheating;
- Will the coin grow in value in the future?
- How big is the mining community of this coin.
To determine if it is beneficial to use this or that coin, you can use the Whattomine website , which will help you calculate the estimated cost of electricity and the reward for mining, taking into account all the complexities of mining.
But is there also an alternative variant of earning on cryptocurrencies? Yes, and this is Masternodes. Let’s see what it is and what it’s eaten with?
For those who do not know yet, Masternodes are wallets that are fully synchronized with the blockchain, connected to the network 24/7. If you are a Masternode owner, you receive a passive income depending on the distribution of the reward between the miner and the holder of the masternode, and also depending on the established reward for each block. The function of Masternodes is to store all information about the network, and also to confirm or reject new transactions that are added by network users in the process of generating a new block.
In the networks of cryptocurrencies running on masternodes, an alternative mechanism is used to achieve consensus in the PoS network (Proof of Stake), which is much more environmentally friendly and efficient than using the PoW (Proof of Work) protocol. To use this protocol, you do not need special equipment or lots of resources to confirm transactions on the unit.If you keep coins, you will be able to receive additional interest from the network. There are cryptocurrency networks that use hybrid PoS and PoW protocols.
Proof of Work vs Proof of Stake
Advantages of Masternodes
Masternodes make the network of blockchain much more efficient, giving its users a number of advantages:
- Transaction anonymity through the PriavateSend mechanism;
- InstantX instant messaging capability;
- The speed of generating new blocks is much faster than in the Bitcoin network;
- High level of security due to the use of the X11 hashing algorithm;
- The award is divided between the miners and holders of Msternodes.
In order to become the owner of Masternodes, you must:
- Synchronize with the network of blockade;
- Your wallet should have certain technical parameters: it must be switched on 24/7, the power of the computer, etc .;
- There should be a certain number of tokens on your wallet.
One of the most popular cryptocurrencies, launched on Masterdnode, is Dash. In order to run the masternode on the Dash network, you need to have 1000 Dash on your account, at the current rate it is 44 BTC or 288 620$ (at the time of writing). Why is Dash so popular? Because it is a network that provides its users with complete anonymity, as well as a high level of vulnerabilities. In the Dash network, the reward between the miners and holders of the masternodes is distributed by 45% and 10% goes to the functioning of the network. But there are other cryptocurrencies running on masternodes, for example, Masternodecoin (MTNC), Bitcoin Lightning (BLTG), Fexchange (FXC), KZCash (KZC), EXUS Coin (EXUS), NERO (NERO), Nibex Cash (NBX) and others.
Masternodes vs Mining
Each of these coins is different for its technical characteristics, mission, practical implementation, as well as different percentage distribution of reward between the miners and owners of masternodes. You can choose the most convenient option for yourself, which you will most like and have a passive income after acquiring Masternode for a certain number of coins. Acquisition of Masternode can become a really profitable investment, if this cryptocurrency at the time of launch has not yet reached high popularity, due to which the cost of the masternode is much lower than in the network DASH.Take a look at Maternodecoin. I am running a Masternode on their network and made nice profit in last few months. I will share few links where you can find more information about Masternodecoin (MTNC) project.
Masternodecoin YouTube channel.
Masternodecoin (MTNC) price, charts, market cap, and other metrics | CoinMarketCap
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