Can you explain what a Masternode is ?

[jdlr]

It's been mentioned many times on the forum, but I cannot find information about Masternodes.

What are they ?

Are they a special software / hardware ?

Do you need initial investment to own one ?

What are the benefits of having a masternode ?

[mk4]

To put it simply, a masternode is where you can generate yield just by holding a certain specific amount of cryptocurrency. Sort of like mining, but without all that hardware expenses. A good example would be DASH, whereas you would need 1000(correct me if I'm wrong) DASH in a local wallet. So to answer your question, yes you need an initial investment to run a masternode.

[jdlr]

And what is the process after owning those 1000 dash?


Do you have to keep the wallet connected online all the time ?

How much would you get paid if you own a masternode?

Is it more profitable than staking your coins?

[odolvlobo]

That's DASH. This forum is for Bitcoin. I think you will get better answers if you ask in a DASH forum such as https://www.dash.org/forum/