Hello,
I'm reading their whitepaper I've got some doubts and questions. I'll update my questions as I read along.
Return on investment for running a Masternode can be calculated as
((n/t) * r * b * a * 365) / 1000
why do they say that there is a lack of incentive for running a bitcoin full node? the rewards for mining will dmininish in time true but then there will be returns from higher transaction fees , bitcoin system seems to be able to handle such a scenario even when block rewards are fully gone.
why to require a deposit of 1000 dash from full node operators? what is the point? doesn't it create a centralization? where only the ones who can affor the deposit are able to mine? in bitcoin everyone is able to mine. what's the point. as far as I can see there is no point of creating a stake IF the difficulty of proof of work is high enough.
"The cost associated with running a Masternode creates a hard and soft limit of active nodes
on the network. Currently with 5.3 million DASH in circulation, only 5300 nodes could possibly
be running on the network. The soft limit is imposed by the price it costs to acquire a node
and the limited liquidity on exchanges due to usage of Dash as a currency and not merely an
investment"
Why would one want to limit the number of full nodes? what is the point.
pseudo code for selecting a master node:
"For(mastenode in masternodes){
n = masternode.CalculateScore();
if(n > best_score){
best_score = n;
winning_node = masternode;
}"
this code seems to promote full nodes with a higher stake. if the CalculateScore function takes into account the ammount of desposit? doesn't it push the system towards centralization?
here I can see the function
:CMasterNode::CalculateScore(){
n1 = GetProofOfWorkHash(nBlockHeight); // get the hash of this block
n2 = Hash(n1); //hash the POW hash to increase the entropy
n3 = abs(n2 masternode_vin);
return n3;
}
so the function depends on proof of work of a given block I don't fully get the third line. the function seems only to rely on the proof of work of a given block height, so, where is the dependancy on a given node. please explain. it is supposed to rank the nodes.
"Currently the Dash network has ~2400 active Masternodes[8]. By requiring 1000 DASH
collateral to become an active Masternode, we create a system in which no one can control
the entire network of Masternodes. For example, if someone wants to control 50% of the
Masternode network, they would have to buy 2,300,000 DASH from the open market. This
would raise the price substantially and it would become impossible to acquire the needed
DASH.
"
ok I see the idea of proof-of-stake here, though you dont call it as such here. 2m dash for a government to buy would be easy money wouoldn't it? considering the current price. of aorund 13usd /coin.
