What's masternode? and why should I have one?

[gha92 20]

Many of you involved in the Cryptosphere or considering investing may have heard of the term Masternode and be wondering what a Masternode is?

In these articles I hope to open your eyes to the world of Masternodes, explain what they are, how they work and how to avoid the bad ones. None of these articles should be considered as investment advice however and you should always DYOR (do your own research).

What is a Masternode?

Before I explain what a Masternode is its worth spending a little time running through the different types of blockchain out there and which ones support running a Masternode.

Blockchains, in broad terms, break down into three types. POW (proof of work), POS (proof of stake) and a mixture of both.

Each of these blockchains must have a mechanism for processing transactions which allows the blockchain to function.

POW blockchains, such as Bitcoin, are underpinned by ‘miners’ who process transactions by ‘mining’ blocks which are then added to the blockchain. Without going into the technical detail in too much depth the mining of a block is achieved by the miners ‘rig’ (which is a computer specifically designed to process data at a very high rate) guessing the answer to a puzzle. The first mining rig to guess the answer to this puzzle correctly wins the right to mine the block. Once a block is mined the miner is also rewarded with, in this case, Bitcoin. Unfortunately POW systems are very energy intensive and the crypto industry is slowly moving over to an alternative, more energy efficient, type of blockchain called POS.

POS blockchains are underpinned by Masternodes. These are computers which process transactions on the blockchain and as a result are rewarded with coins from the blocks being created. Nodes sit on the blockchain, normally within a queuing system, and when they reach a certain position in this queue can be selected, at random, to be rewarded for participating within the network. As a result of this rewards can appear at different intervals but usually average out over time.

Why should I run a Masternode?

Masternodes provide the opportunity to invest in Cryptocurrencies with the added benefit of earning guaranteed extra coins in addition to gaining exposure to the large potential increases in value that can come within the Cryptosphere and owning cryptocurrencies.

These coins are awarded through running a node and as covered later in this article these rewards can also be used to generate rewards on top of your rewards. Great eh?

So, what can go wrong?

Well, as with any investment there are risks and these can be significant within the Masternode world. Since the beginning of 2018 there has been an explosion in the number of Masternode coins and unfortunately this has also attracted a fair number of scammers to this space.

Therefore this article comes with a word of warning. Be very cautious of any Masternode coin offering very high ROI percentages — anything in the 1,000% or above bracket really needs to be treated with caution and any coin that does not have a utility as well should be avoided in the early stages of it’s life. I will go into more detail of the steps I take to minimise the risk of choosing a scam coin and what to look out for in my next article.

[Afrizal rahman 2636]

Thank you for the article you gave. previously I did not know what masternode is. after reading this I also understood it. Thank you very much.

[Migo 7946]

I always read many topics about this masternodes word, and honestly I never understood it what is the meaning of it, but now because of you I have some good ideas about it, so thanks for this contribution 

[Yanadia 1517]

Really a good article. Thanks for sharing knowledge about mastermode I don't know and haven't even heard of it before. Now I know and this is really useful knowledge for crypto users, invest began.

[Thekingcallme 1975]

Your words are true, but the matter does not constitute a great danger on the ground, so you should not worry about the energy that mining uses

[Akbor 1042]

Thank you very much for your information. first when I join in a masternode I think that it is like an exchange and now I am clear about what is it.

[rajonmia 181]

Yes I also read this news. That is really great. I think your article help a lot of members here. Thank you so much such a beautiful article share.

[pakjobhelp 1585]

In my opinion the different countries work for the same situation and make a hub and work combine for cryptocurrency. This is good and best for crypto currency future. I know so far as this masternodes work for generate new coins.

[Heroshema 0]

Its called in some blockchain as Vote .. you can earn money from stacking some coins by voting for somthing

[Shaza Ahmad 1682]

Thank you for this great article, I think that the Master node would be very profitable, but this depends on the price of the cryptocurrency, if the currency price does not decrease, you will get great profits.

[Muskan7816 175]

I don't know it so if anyone knows about it then they told me if you could tell me about one better then I would be very benefited as I am new to this forum.

[Razan alikac 1899]

Thanks my friend for this great article, new information about Crypto I read about it now

[McCree 713]

On 12/5/2019 at 2:04 AM, Yanadia said:

Really a good article. Thanks for sharing knowledge about mastermode I don't know and haven't even heard of it before. Now I know and this is really useful knowledge for crypto users, invest began.

Which article? OP didn't cite an article where this masternode topic came from if he did take this from an article.

 

But regarding masternodes, someone with a data center full of cryptocurrency transacting nodes could get a lot of money from processing a proof of stake coin. If ethereum difficulty becomes harder and it switches to PoS in the future, this is an attractive alternative for the owners of large computing resources.

[Akasshh 234]

A Masternode in cryptocurrency (also known as a bonded validation systems) is a server that underpins a blockchain's network.They are responsible for enabling specific services that miners under proof of work cannot accomplish.

[bentayebsalah 2280]

Masternode has many benefits but be careful while running and using it because some currencies and projects are a scam

[Nayem Hasan 57]

A good way to earn a MasterNode.  However, you risk too much of everything in the crypto world.  So you can invest in this MasterNode without any risk. It is normal to have a low risk business.

[babaji 1228]

I am running a few masternodes, and I have to warn you to be very careful. I invested in a coin called ghr and its gone now. I have almost a million of it now, which is not even dirt cheap. I also a few more, and i have to recover my investments from any of those. So please be very careful, as you have been warned. 

[Tasrif Hossain 271]

I think I should thank you before replying to your post. I had no idea about it. It was completely cleared because of youBecause of this, I have been able to get a very accurate and completely clear idea which is why I enjoyed your article very much and thank you very much

[Suhannewaz 245]

A masternode is a full node of cryptography or computer wallet, supporting the network, hosting a copy of the coin book in real time. On behalf of the Masternode, the crypto coins will be rewarded. 

[Amirul Islam 382]

On 12/4/2019 at 11:32 AM, gha92 said:

Many of you involved in the Cryptosphere or considering investing may have heard of the term Masternode and be wondering what a Masternode is?

In these articles I hope to open your eyes to the world of Masternodes, explain what they are, how they work and how to avoid the bad ones. None of these articles should be considered as investment advice however and you should always DYOR (do your own research).

What is a Masternode?

Before I explain what a Masternode is its worth spending a little time running through the different types of blockchain out there and which ones support running a Masternode.

Blockchains, in broad terms, break down into three types. POW (proof of work), POS (proof of stake) and a mixture of both.

Each of these blockchains must have a mechanism for processing transactions which allows the blockchain to function.

POW blockchains, such as Bitcoin, are underpinned by ‘miners’ who process transactions by ‘mining’ blocks which are then added to the blockchain. Without going into the technical detail in too much depth the mining of a block is achieved by the miners ‘rig’ (which is a computer specifically designed to process data at a very high rate) guessing the answer to a puzzle. The first mining rig to guess the answer to this puzzle correctly wins the right to mine the block. Once a block is mined the miner is also rewarded with, in this case, Bitcoin. Unfortunately POW systems are very energy intensive and the crypto industry is slowly moving over to an alternative, more energy efficient, type of blockchain called POS.

POS blockchains are underpinned by Masternodes. These are computers which process transactions on the blockchain and as a result are rewarded with coins from the blocks being created. Nodes sit on the blockchain, normally within a queuing system, and when they reach a certain position in this queue can be selected, at random, to be rewarded for participating within the network. As a result of this rewards can appear at different intervals but usually average out over time.

Why should I run a Masternode?

Masternodes provide the opportunity to invest in Cryptocurrencies with the added benefit of earning guaranteed extra coins in addition to gaining exposure to the large potential increases in value that can come within the Cryptosphere and owning cryptocurrencies.

These coins are awarded through running a node and as covered later in this article these rewards can also be used to generate rewards on top of your rewards. Great eh?

So, what can go wrong?

Well, as with any investment there are risks and these can be significant within the Masternode world. Since the beginning of 2018 there has been an explosion in the number of Masternode coins and unfortunately this has also attracted a fair number of scammers to this space.

Therefore this article comes with a word of warning. Be very cautious of any Masternode coin offering very high ROI percentages — anything in the 1,000% or above bracket really needs to be treated with caution and any coin that does not have a utility as well should be avoided in the early stages of it’s life. I will go into more detail of the steps I take to minimise the risk of choosing a scam coin and what to look out for in my next article.

In my point of view I think it's better than normal stake. It give us profit than stake. It's a package of stake. It's an important part of a project. People connect on the project through masternode.

[ripa12 92]

Thank you so much for letting us all know about master node . Many in this group did not know about this . I didn't even know . Now I have got some idea of master node .

[lingardcpp24 7]

Because the most popular form is Proof of Work, which consumes a lot of electricity resources, negatively affecting the energy environment, masternodes have been born to improve the issue, while helping to secure and secure the system. system and transaction process take place more quickly and smoothly. If you are a miner, you should use a masternode

[Ayush Singh 1175]

Great I am hearing it for the first time and while seeing the post I have gain a good knowledge about it that's the reason I like Crypto world because here we are able to gain lots of new knowledge from which we are not aware of and it's good for our future.

[Babu5432 0]

I am also grateful for the news but I contemplate near are preferred keys moreover required to flawlessly be experienced of the theme. For example, which coins aregifted to benefit master nodes
 

[BitMart 326]

This is also one of good way to have some good profit from cryptocurrency because many peoples don't like to trade so they can do this even its also have some own risks but still much better option currently Dash is one of best and high paying coin but if someone want to invest then surely do his search and then invest which you can afford to lost.