What is a node, a full node, a masternode. How to earn on this?

in cryptocurrency •  2 years ago  (edited)

    

What is a node, a full node, a masternode. How to earn on this?

How to earn on PoS mining using a standard computer? What are nodes, complete nodes and masternodes? What equipment is needed for PoS mining and earning at the nodes? All answers in this article! Who is already fumbling, let's go!

What is a node, a full node, a masternode?


 First, let's define the terms. As you already know, PoS mining consists in the fact that you are paid coins simply for the work of your wallet, practically without using the power of the computer. We'll figure it out, for what exactly.

Node - when you download the purse of a particular coin, you start synchronizing with the network. Synchronization means downloading the entire history of transfers of this coin on the network. Thus, you upload the entire transaction history to be stored as a decentralized server in the future. As long as synchronization is in progress, your computer is just a Node.

Full node - is a fully synchronized wallet. When you download all the transactions, you start to store them. Also, an algorithm is written in the full node, which allows you to check for new transactions for compliance with network rules, before the miners include them in the block. At this stage you are already starting to earn. Just replenish the purse for the number of coins you can afford, and while it is working - you earn. This is called PoS mining in the classical sense. The more coins you have, the more often you will receive a reward. Check when the reward will be credited. In the right lower part of the wallet there are different icons. Whether you participate in the share, and how long to wait for the reward. Screenshot with an example below.

If you do not have time to receive a reward, try either wait a few hours (day), or check the encryption of the wallet. If you want to earn as a node, you should be open to the world, and the wallet is not encrypted.

Masternode - a node that includes transactions in the block. If you are setting up a masternode, you become a full-fledged miner. The masternode not only store network history and check transactions, but also include transactions in the block and ensure anonymity of transfers, essentially doing the same work that traditional miners do in PoW mining on video cards and asics. For this, owners masternode receive coins for each extracted block, and the profits here are maximum. If you choose the right coin, the profit from the master-class and its payback will give a "light" to any home "crochet" with its set of video cards. However, the masternode have special requirements. Here's what you need to do:

  1. Download the purse with the selected coin. Wait for complete synchronization. Sometimes it takes several days, if the coin is popular, and transactions have been much since its launch.
  2. Order from your Internet provider a dedicated (white) IP, which will be used by the rest of the world to connect to your masternode. A typical local IP, which is often dynamic, is not suitable. The cost of such a service is quite small, up to 100 rubles a month.
  3. Open the port on the router that is necessary for the work of the masternode. Again, when calling a provider, ask if they block the ports themselves, or not. If not, then open them on the router. If so, ask the provider to open a specific port for you. Which one and how to open the ports on the router, find out later.
  4. Download the instruction on tuning the masternode from the official site of the cryptocurrency. There you can also see how many coins you need to run the masterwave. Each currency has a different number of coins, respectively, different initial investments and payback periods.
  5. Buy the required number of coins, you can initially with a small margin. Translate them into your wallet.
  6. Make all necessary settings in the system files of the wallet. This is not done for long, the first time it took me about an hour. The next I set up in 15 minutes. In instructions from the developer this all is + I will publish for some coins instructions myself.
  7. Run the masternode. Make sure is earning. Ensure continuous operation of the purse 24/7. Receive money

At first glance, the setup of the masternode can be difficult, but believe me, it's not. The most frightening is the first time, everything is easier and easier than ordering the pieces of iron from somewhere, and then grappling with them, dispersing them, connecting them to pools, watching overheating and so on. If the wizard turned off (turned off the light, the Internet, or just decided to give the computer a rest, went on vacation, etc.) - then nothing terrible will happen. You simply will not earn until you turn on the wallet again. To start the masterplane, you just need to press the Start button, and flew on.

Why Mining on masternode is steeper than mining on equipment

I am convinced that the future is precisely behind this mining. Judge for yourself.

  1. Availability. In order to start earning, you do not need big investments. You do not need to invest in equipment, you can mine on your old good home computer. No need to borrow additional space or even rent a room. The cost of electricity, respectively, is also minimal.
  2. Profitability. At the moment, many masternodes have an annual profitability of more than 200%. In some, there are a thousand. Detailed information:  http://mnrank.com/ .  
  3. Payback. But here in general the most deadly argument. You do not have a repayment! In the sense that you have nothing to pay for. The main expenses for the work of masternode is the purchase of the guaranteed number of coins that give you the status in the network. For the duration of the masterwork these coins are frozen. But if you decide to quit the game, then you just need to turn off the masternode, and sell all the coins that you bought earlier, and who managed to mint. You go to the net from the first hour of work! Without losses! Correctly selected coin not only gives you the opportunity to earn on mining, but you will still earn in the future, selling your guarantee margin is more expensive than you bought at the start. Can you sell video cards after mining quickly, and even more expensive than you bought? Of course not.

Why the earnings on the masternode is not utopia.

You read my article. And already look in the purse or look the nearest branch of the bank to take out a loan. The topic is generally cool, it turns out? Are there no risks? Do not rush, gentlemen, there are risks always and everywhere. If mining on the workshops were ideal, probably everyone would have earned only on it. We look at the other side of the coin.

  1. Probability to burn out. At the moment, only Dash offers masternode technology from top coins.  Just the coins that are needed to run the masternode will cost you more than 100 thousand dollars. And the annual profitability is only about 6%. I think we can all benefit much more. The really interesting profitability is given not by such top-end coins. Often the younger the coin, the higher the percentage of yield there. To lure people.  Imagine that you bought a coin and the coin took and collapsed. That is why when choosing a coin, one can not be guided only by the indicator of its profitability.
  2. Work on the stock exchange. You will have to learn it somehow. In our time, even bitcoin can not always be bought with hands, and if you can, then with huge commissions often. When working with an unpopular coin you will have to buy it yourself and sell it later. It is not difficult, but requires additional knowledge and time.
  3. Binding to the house. You will be tied to the house anyway. The equipment should work without failures, and the likelihood of fire (God forbid) is present at the home computer, too. Another thing is that there is much less binding here than the miners on the cards. 

Conclusion

 I always advise everyone, and I adhere to this rule myself - do not put all the eggs in one basket. Even if now the earnings on the masternode seem to you the most attractive, do not get into debt and do not throw all the money in it. There should be several sources of income.  

Earnings on masternodes can be compared with home mining on video cards. If we compare exactly these two directions, the masternode is thundering in the ruff of the competitor. But if you start comparing the master log with earnings in the industrial Bitclub pool, for example, it will be an incorrect comparison. Yes, the master's profit is higher, you can not argue. But not in money is all happiness. Consider such factors as: stability, time spent, the produced currency. Therefore, either choose the one that suits you best, or set a goal to earn both, there and there to hedge against risks.

If you have enough time and money, invest in Masternodecoin and set up masternode !!!

Good luck! 

Authors get paid when people like you upvote their post.
If you enjoyed what you read here, create your account today and start earning FREE STEEM!
Sort Order:  

Very nice.. thank you!

I'm happy that you like it.

Great article!

thanks