Masternodes what good are they?

[Jeff8247]

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

[generalizethis]

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

dash hominem--are you guys even trying anymore?

[Jeff8247]

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

[Saltzman Alaric]

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.    

[illodin]

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

[monsterer]

Not only that, but masternodes are fully decentralised because they are reproducible at infinitum (subject to supporting coin collateral) since they are simply regular daemons with an alternate operating mode. (masternode=1 in configs) 

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?

[toknormal]

How about the trust factor, though - for instant transactions, for example... In plain POW schemes, transaction confidence level increases with each subsequent 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".

[monsterer]

How about the trust factor, though - for instant transactions, for example... In plain POW schemes, transaction confidence level increases with each subsequent 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.

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.

[toknormal]

- 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.

[monsterer]

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

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.

[Prosperityforall]

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

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.

[toknormal]

It still boggles my mind that they choose the flawed masternode concept instead of superior anon like cryptonote or soon to be zerocash

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).

[pa]

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/

[generalizethis]

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?

[—]

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/

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.

[illodin]

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/

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).

[monsterer]

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.

[PoS]

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.

[obit33]

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

[illodin]

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

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