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Masternode

The term masternode was first used to describe Dash masternodes, these provided instant send and private send services. The concept of servers providing services to a cryptocurrency network has expanded and these servers are not always referred to in the same way. They could also be typically called nodes.

In this article the term masternodes describes any cryptocurrency which allows the decentralised use of servers, which can generate an income to the owner.

Why do masternodes need a collateral to be created?

Masternodes process transactions on a network, the data passing through this network is encrypted, however there is still room for masternodes to act maliciously. Masternode operators with skin in the game, (the bond) have an incentive to play by the rules.

Masternodes are also called Bonded Validator Systems.

 

What does a masternode do?

These are some examples of cryptocurrency masternode services and which currency use them.

Privacy related functions
Zcoin, Pivx, Dash,, Monetary Unit

InstantSend
Dash, Crown, Monetary Unit

Hashing
Tierion (Lottery based system) (careful!)

Commerce services (not released as of 21/09/2017)
Syscoin

Cryptocurrency Exchange
BlockNet, Exscudo

Smart contracts
Syscoin, BosCoin

What are the requirements of to operate a masternode?

Each cryptocurrency has different requirements, in terms of bond and computing power of the server.

 

Price

Last traded price of coin with ~3 minutes (or block time) delay.

 

Change

Coin Price Change from exactly 24 hours ago.

 

Volume

Value of all the coin traded in the last 24 hours.

 

Marketcap

The value of the entire coin supply based upon the last traded price.

 

RIO%

Annual Return on Investment of masternode of this coin.

 

Nodes

Lists the number of active masternodes on specified coin network.

 

Collateral

The amount of coins required for a masternode. Always buy 1 more for transaction fees from exchange and internal transaction to the masternode.

 

MN Worth

The current value of masternode based upon last traded price. It is Price x # required.