What is a Masternode?

waynetva (25)in #steemit • 6 years ago (edited)

WHAT IS A MASTERNODE?

Basically a masternode is a server on a decentralized network that stores a copy of a coins blockchain . A masternode can perform unique functions that ordinary nodes can't. Masternodes can perform features such as instant transactions or private transactions. Some masternodes have governance & budgeting capabilities which give a masternode holders the opportunity to vote on proposals and direction of a proposed project. Masternodes generally require a sizable investment in order to run. For example a DASH masternode requires 1,000 coins in order to set up a masternode. However masternode operators are rewarded for the services to the network by earning a portion of block rewards for supporting the network of the coin. Currently there over 300 masternode networks and no masternode is alike. Not all of the masternode networks are the same and many of the different masternode networks payout differently. Some masternodes pay several times a day and for instance SmartCash masternode payouts have been reported to take as long as 22-30 days. Receiving block reward payouts is a great incentivization for masternode operators to have their masternodes operating 24/7/365.

Being a masternode operator enables one to make a passive income and provide a service to the network of their coin. A masternode can be ran from a personal computer, a virtual private server (VPS), or a Raspberry PI.

The best way to ensure your masternode up online 24/7/365 with no downtime is to have your wallet connected to a VPS. Very popular VPS services are Vultr and Digital Ocean.

HOW MUCH CAN MASTERNODE OPERATORS MAKE?

There are various factors that play into a masternode compensation such as the block rewards amount, cost of the coin, amount of active masternodes on the network, and even the cost of hosting/ maintenance. Before investing in a masternode it is a good idea to do some type of due diligence before selecting a masternode. Sites such as masternodes.online and masternodes.pro that display a masternode statistics are great resources when shopping for a masternode.

Masternodes can be very lucrative and are very attractive to investors and developers. For the reason masternode collateral can be put to work and earn interest for a masternode operator. Setting up a masternode can a steep learning curve for some or may be easy for someone who is technical. However setting up a masternode can be done by one who may not be considered a technical person. In most cases spending the time to set up a masternode can be worth the time and effort to set up.

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GREAT SITES TO VIEW MASTERNODE STATISTICS:
Masterhttps://masternodes.online/