My eyes on masternode coins

in #cryptocurrency4 years ago

This time we are going to talk about masternodes as they are from my eyes.


First of all why of a sudden I have written this post? Simply because I wanted to , and I also see blogging more as a stress relieving method than anything else. So let's get right into this .
Masternodes in plain English work the same way as servers and databases work . Since you allow your computer resources to be used for the purposes of the coin's blockchain you get rewarded. The amount of coins required for a masternode differs from one coin or token to another one . Although I really doubt that tokens can use this feature as they lack their own unique blockchain - they mainly use Ethereum blockchain.

Why would you not just use PoW mining instead?

Simply in comparison PoW mining requires hardware and constant maintenance with electricity and technical support when it is needed . It means that instead of having actual coins bought to use PoS (Proof of Stake) you need to buy ASIC miners that can become obsolete after some time and might not give any profit at all. Unlike such coins that use PoW(Proof of Work ) mining mechanism PoS enabled coins are "staked" meaning that you get interest of your current holdings rather than buying some questionable hardware .

All this talk but what about masternodes?


Masternodes basically work the same way as usual staking but with a minimum amount of coins needed to run it . This is to provide stability and also increase the coins value by decreasing supply and also that could be one of the reasons why they also give better ROI(Return of Investment)

So at the end of this all it makes sense that masternodes give you better rewards and not to mention also give you coins . PoW seems to be getting less and less profitable so it is possible to take your chance and check coins with such nodes out at : . Not a financial advisor and so am only trying to show my perspective.


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