Bitcoin Forum

I am fairly new to crypto and dont understand masternodes, what good are they? There is thousands of coins all work perfectly well without. Are they a money laundering tool if so how much money is being cleaned a day.
I have learned if something is a quality product it is immediately copied and reproduced many times over just like Dash itself is one of many copies of Bitcoin. The absents of many many coins not having masternotes after such a long time gives a snake oil impression.
Some coins are modified after launch, similar to a stock standard car getting something attached later to it, but at the heart its still the same thing.

No one likes taxes, because a lot of people have the opinion they dont get value for money. Dash has a whopping 65% tax burden, is that fair to miners who get ripped of on grand scale ?

Fundamentally, masternodes are the 'trusted 3rd party security hole' that Szatoshi Nickamoto warned us not to use.

Masternodes are part of Dash's multilevel HYIP marketing scheme.

Your masternodes earn Dash, so you can buy more masternodes.   ::)

They don't actually DO anything useful, and present a vastly expanded attack surface to adversaries.

Unbelievably, payouts are centrally directed by a master-masternode, which makes Dash an unregistered/illegal money transmitting business.

I wouldn't want the stolen BTC from BTer.com passing through my masternode, but the DashHoles are demonstrably eager to participate in the plunder and launder coins for the thieves.

If you bring these facts up on the DashHole thread, the cult-like community alternatively attacks and fake-ignores you for disturbing their groupthink and cheerleading.

Wait, so it's ok if the thieves use Monero to launder their coins, rather than Dash?

If you're the thief it is  :P

The Monero community must be looking out for the thieves then? Thieves deserve a fairly distributed and ethically organized means through which they can cover their tracks, I see.

See what I mean?

The DashHoles think they can deflect critcism away from Dash if they change the subject.

I said "demonstrably" because anyone can search the DashHole thread for "BTer" and see them gloating about the rise from shifting stolen property.

99% of them are stupid alt-kiddies lacking any knowledge of finance, law, economics, computer science, or cryptography.

The remaining 1% are cynics who don't care about the technical stuff so long as they are making money off the pump.

Privacy is a two-edged sword--this is no different than proton mail being run legitimately. The technology is built to be effective not moral--that's for the user to decide.

Anyway, back to Amway nodes....

Amway nodes?  LOL, you're being too kind.

At least Amway provides useful things like soap.

Masternodes are more like Madoff's feeder funds.

I prefer to call them PonziNodes or MadoffNodes.

I start to understand why it is not been copied endless times over by now. To do no meaningful work, defraud the miners and hang on like a bloodsucker is bound for disaster.
Isn't the whole idea of crypto not to trust 3rd parties as there is no need for these leechers.
If payouts are centrally directed by a master-masternode, what happens if this master-masternode is replaced?
Are HYIP's legal in every country?

Useless topics like these, what good are they ?

As a cryptocurrency investor the fine print must be read too.
Your post is certainly useless as it does not help in any way. Just a time waster. 

See, I told you the DashHole cultists would attack you for asking uncomfortable questions about their high-yield Masternode investment product and its multilevel marketing.

They only like softball questions like "How much will Dash be worth if it replaces gold, Bitcoin, Paypal, and fiat?"

Pick up a pom-pom and cheer louder, or you will find yourself a target in their crosshairs.

Dash is for several reasons illegal in the State of AZ and nation of the USA.

We have contacted the proper authorities and they will take care of this scam.

The wheels of justice turn slowly but grind exceedingly fine.

Check the links in my sig for more info.

See what I mean?

The DashHoles think they can deflect critcism away from Dash if they change the subject.

Thanks learnt a lot. If illegal in some places i can not see a good deal. Certainly dont wont to belong to a cult or organized criminal gang which it looks like it is.

Subject wasn't changed. The subject of this thread (and many others) is actually Monero. And getting it mentioned along with the leader, DASH.

So you talk to yourself now? Seek help.

Its the new hype in town. Nothing beneficial to the outside world

lol i'm not a Dash fan but if we're going to talk about US law and Bitcoin, when is Satoshi going to pay his taxes on his 1 million Bitcoins #_#

Right after authorities have "taken care of this scam".

The leader of what? Anonymity, no. Marketcap, no. Reputable coins, no. Fair distribution, no. Knee-jerk reactions of every thread that is potentially critical of x/dark/dash, yes. Leader of renaming your coin to escape the truth of an instamine, yes.

Anyway, back to Amway-nodes. They are very good at keeping large amounts of coins locked-up and off the market, but they add an attack vector, so rationalizing them into a privacy coin is dumb. Now, if you wanted a non-privacy coin with a built-in method for power centralization, they're one of the best ideas ever. Especially if you create a reward system that benefits masternode operators if they attack other masternode operators to reap the highest profit margin. As the Dash Bitcointalk page outlines here:

https://i.imgur.com/K6jdLRp.jpg

LMFAO another day and another DASH SCAM/INSTAMINE etc thread from a noob. GG Trollero

dash hominem--are you guys even trying anymore?

No champ, its not even worth it. There will just be another noob account tomorrow spinning the same shit as today...

Masternodes are a security hole and are also a giant marketing scheme.

It basically amounts to inflation in a way where each masternode gets an extra .5 Dash a day.  And they all think they are getting richer because they see their Dash balance going up..... But even though everybody's balance is going up, everybody's pile is getting equally diluted.  

So after a year you get a lot lot more of something worth a whole lot less.  But they can pump to keep the price up, so on paper everybody is getting richer.  

But we know that like one guy owns more than 20% of Masternodes (goes back to the instamine.  don't ever buy into a coin where 10 people started off with all of it).  There aren't even enough buy walls on every exchange if you added them all together for him to cash out.  This is like a clock ticking down.  At any point he can decide he will retire, or move on to his next project and cash out of this one.  That is what scammers always do and you don't get 20% of masternodes by being honest.

So when he cashes out, the price goes to 0.0001 USD per coin.  There are lots of bag holders and one rich guy happy in retirement.  

And..... it is all legal.    

Taking electricity cost and other things into account, has anyone compared the profitability of "mining" with a masternode with a mining rig?

How about the trust factor, though - for instant transactions, for example... In plain POW schemes, transaction confidence level increases with each subsequent block. With masternodes for instant transactions, there is a fixed probability of collusion which doesn't improve with each block?

Dash is a POW scheme exactly as bitcoin is. If more trust is needed then users can just wait for the full blockchain confirmations as with bitcoin.

The other day I sent someone 20 Dash by InstantX as a cash prize for a competition I was running and the transaction became part of that prize-winner's confirmed balance instantly. If I had been sending a multi-million dollar international transfer I suppose I may have sent it regular-degular and waited a few minutes before counting "my chickens".

Ahhh, so users have to choose between speed and security?

edit: I think it is important to understand the difference between confidence in instant transactions and confidence in regular transactions as the block height increases - the video on instant x I saw implied that an instant x transaction was as good as 6 block confirmations, which makes them sound equivalent.

Maybe they are then and I was wrong that users have to choose between "speed and security".

The title of the thread was "Masternodes what good are they?".

The answer to that question is that so called 'masternodes' are a decentralised implementation of functional diversification which has been the basis of every service-oriented network in the history of digital computing.

No doubt there will be a variety of views on the optimal way to solve bitcoin's looming scalability and other issues that accompany widening adoption, but it's academic that if you stick with a monofunctional network then the solution to every single problem has to be a kludge compromise between one highly desired technical objective and another.

My point is, I don't think you were wrong. But, instant x is being advertised as being a secure as six confirmations, when in actual fact it has a totally different risk profile.

You're right, and that's the reason Bitcoin never added in the trivial and flawed concept of "masternodes". Just like decreasing block time leads to more orphaned blocks, decreasing # of confirmations with Instanx leads to less security. Then there's the issue of having a 3rd party do necessary services, I'm sure Satoshi thought mining would eventually centralize a currency enough, but masternodes? That'd totally take away the decentralized concept i.e double trouble.

Then, what further makes masternodes useless is that the things a masternode does(provide "anon) is possible/becoming posible with features such as Coinshuffle, which is decentralized coinjoin anon. As soon as Coinshuffle comes live for Bitcoin and other cryptocurrencies, masternodes in coins like Dash/Darkcoin become entirely useless as you wouldn't have to sacrifice security and decentralization for "anon" anymore.

It still boggles my mind that they choose the flawed masternode concept instead of superior anon like cryptonote or soon to be zerocash. Coinjoin can't compare in the least to the anonymity cryptonote provides and zerocash will.

Also, in the case of a 51% attack, Dash is far more suspectible than a currency that doesn't have the Instantx "implementation" as you'd be able to do the attack with less confirmations.

Boggle away.

Some of us worked it out in about 5 minutes. (But then we're in the market for monetary solutions, not mud machines).

Is DASH at risk of this kind of regulatory enforcement? https://www.reddit.com/r/Bitcoin/comments/34zj70/fincen_fines_ripple_labs_inc_in_first_civil/

If you are funneling darksend transactions through masternodes in exchange for assets, are you culpable for not following KYC rules the same way a money transmitter or an exchange is?

Yes.
Every masternode operator must comply with KYC
This is why we can't rely on trusted third parties to do off-chain transactions for us.

Must every miner comply with KYC? They are doing much more in terms of transmitting money that masternodes (which are not transmitting money).

Only if electricity companies are required to register as MSBs.

Most Dashers have dropped out of school otherwise they would see the flawed design there cult leader leads them into.
In there mind if they increased there holding from say 3000 coins to 3300 for free is a good thing and there on the way to unimaginable riches. What they fail to see is the fact that they must find noobs at the same rate or faster they increase there holdings otherwise there pyramid game collapses. So far they managed to spin a few yarns, enough to keep it going, but at some time even the slowest of slow soul will not be willing to buy anymore.
Like every pyramid system the closer to the top you are the better, the last once bit the dogs. 

Masternodes are good to increase the instaminers holding for no additional cost.  So the number of instapremined coins "grows" by the minute. 50% of all new mined coins can be added to the fraud.

also, most masternodes are on amazon-servers... NSA watching, check!

NSA is already on your personal computer... NSA watching, check!

Are you talking about inflation? Quiz for you, what is the inflation % of DASH? What is the inflation % of XMR?

Dont care about the inflation of a coin and even less about XMR.
Do care about scammers, cheats and fraudsters.

Well, better come up with other arguments than inflation then.

::) got to love haters! 

That's dumb--if it's pointless, why would you even need a supposed anonymity feature for dash then? It also doesn't take into account people who use Linux OS, no drm, use non-us based hd's, ect. You should go to the Monero threads and learn how to keep your privacy. But it does make sense now why you don't mind using masternodes.

Do you have to work at writing complete incoherent nonsense or does it just come naturally ?

What is pointless? If you likely can't defend against NSA does it mean it's pointless? What's then point of Monero then?

If you believe that, then it would be pointless--did you bother reading the rest? ^

what a great argument, let's just give up on crypto's and ban cash... privacy doesn't exist anymore anyway, i'll just give in to eternal serfdom, thank you for your enlightening comment!

the masternodes in dash are an obvious flaw, if you can't admit that i feel kinda sorry for you...

best regards

A great way to keep 2.5 M coins off the market.

Thanks for pointing out another flaw of the system. How can i use money which is not on the market, it is a liquidy killer.

What i found so far, it is a great way to make the insta(pre)mine worse by the minute as free new coins are added to the stash and at the same time make the coin less secure as i need to trust possible shady characters.

Yea we should ban cold wallets and such as they are bad for liquidy.

As a matter of fact, we should allow coins to exist only on exchanges so they are ready to be used on the market.

Instamine fraud wasn't enough... they needed a way to monetize that fat instamine ::)

Yes, and that monetization is controlled by a single centralized Master-Masternode under the direct control of THE DARKCOIN FOUNDATION INC.

That's yet another reason DASH is an MSB (in violation of FinCEN).

That looks like stormy times ahead.....

Masternodes translated to the real world is like this:
You get a bunch of workers to your place, give them some drinks and some cigarettes and they stand around all the time and to nothing except laugh at you and make jokes, piss on your lawn. 
At the end of the day you reach into your pockets and pay them for having done absolutely nothing.

An interesting analogy.

Is there any reason any coin would want to do this apart from allowing people to get more coins without mining ?

There was talk about some kind of future 'cross chain' enhancements in another thread, I can't remember where but I think it might be something like a kind of decentralised marketplace.

you do understand that this picture represents how our world works atm :)

can you fight that ? nop!

just go with the flow, because if they crash to oblivion, crypto will be there also

Masternodes... So 2014...

Masternodes is the new "hold the bag"