The  concept of a masternode started gaining popularity thanks to the Dash  cryptocurrency. It is quite interesting to see masternodes form such an  integral backbone of the network. Operators receive monetary rewards for  running this node, yet they also need to provide a financial stake of  their own. It is due time we take a closer look at what masternodes  entail exactly and why this concept has become so popular.


 

What Is A Masternode?

 
 
 
  It is important to understand how the Dash ecosystem  works before one can see the value of a masternode. Dash, a popular  privacy-centric altcoin, uses a proof-of-work system similar to the one  found in bitcoin. However, that is only part of the ecosystem that  allows users to earn money. Not everyone is able to contribute to the  network as a miner, which is why masternodes were introduced.  Look  at a masternode as a special server that is maintained at all times.  Masternodes are trustless and decentralized, similar to how bitcoin  nodes operate. There is a major difference, though, as Dash masternodes  take care of the anonymization part of the Darksend protocol. users can  opt to send transactions anonymously by using this feature directly from  their Dash wallet.  Every  masternode on the network provides this anonymization service, ensuring  there is no centralized party to attack or take down. Moreover,  masternodes ensure all transactions are validated in near real-time,  making them quite efficient. Unlike bitcoin nodes, however, owners of a  Dash masternode will receive a financial compensation for providing  these invaluable services.      Individual  masternodes on the network have a chance to be selected as a recipient  of part of each mined block’s value. As more time progresses,  masternodes will earn the same share per block reward – 45% – yet it  will take longer for investors to see a return on investment. For  example, with 1,000 masternodes in January 2016, the select masternode  would earn 47.3% ROI per year. Increasing the number of nodes fourfold  means every node sees 11.8% ROI. It is expected this number will drop to  between 4.5% and 18.1% annually by 2029, depending on how many nodes  are part of the ecosystem at that time.  To  achieve this ROI, masternode owners must place 1,000 DASH into the  wallet associated with this node. Moving the funds out of the wallet  will remove the masternode from the network. Additionally, the wallet  address will no longer be eligible for rewards either. It is possible  for users to move their funds out of the wallet at any given time,  although it is not in anyone’s best interest to do so overnight. With  the rewards flowing in virtually every week, there is a lot of passive  income to be generated by running a masternode.  All  things considered, using a masternode is an intriguing system. It was a  great way to attract investors early on, as Dash was priced much lower  per coin a few years ago. Putting up 1,000 DASH as collateral then and  running the masternode till today would have earned the user a  substantial profit. Moreover, given Dash’s value appreciation, the  passively generated interest almost quintupled in value as well. It is  doubtful bitcoin will ever introduce masternodes into its ecosystem,  albeit it would be quite interesting to see for sure.



 

WHAT DO I NEED TO HOST A MASTERNODE?

 
 

--Servers

• www.digitalocean.com/
• www.vultr.com/

--links

 

• http://dashmasternode.org/setup-your-own-masternode/
• http://dashmasternode.org/masternode-service-providers/
• https://go.oclasrv.com/afu.php?zoneid=1525490

--Masternode List to Buy

 

• https://masternodes.pro
• https://masternodes.online

--Popular places to exchange cryptocurrency list

 

• https://www.bestbitcoinexchange.io

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