A brief overview about masternodes
What is a masternode?
A masternode controls a cluster of nodes in the network. It runs the same wallet software as other nodes in the blockchain and it offers extra services to the network. Services that a masternode provides are the following:
- Insant Transactions
- Increased anonymity of transactions
- Decentralized governance
- and other relevant services offered by the coin
What can you benefit from owning a masternode?
You can earn passive income by owning a masternode. Through these extra services, owners earn a portion of reward for each completed blocks in the blockchain. If you invest in a masternode before a coin is launched, there is a great chance of earning great profits.
Also, owners of masternodes are given the power to vote on proposals for the improvement of the cryptocurrency. They can also help increase the demand through supply reduction by taking an amount of coins out from the circulation.
With more masternodes being created in the network means more security for the coin and more votes for proposals.
Are there any drawbacks in using a masternode?
Yes. It is also important to take note of downsides. Some of the probable negative aspects about masternodes are the following:
- they are open to DoS attacks if weakly hosted
- you will not get any decent ROI if you invest when the price is at its peak and plummets after
- the more the masternodes created, the lesser the revenue
The following are a list of coins that uses masternodes:
- DASH
- PIVX
- NEM
- Crown
- Exclusive Coin
- Block
- BosCoin
- Monetary Unit
- ExScudo
- Bitsend
- Transfer
- Bata
- Diamond
- iCash
- Chaincoin
- xtrabytes
- Renos
- Terra coin
- Neutron
- Exclusive coin
- Diamond
- 8bit
- Linda
Overall, a masternode is not just a means of investment but also it plays a very important role in helping the cryptocurrency improve and advance in the industry.