We're also proud to announce that the public testnet is now live.
What is a masternode?A masternode (MN) is simply a cryptocurrency full node or computer wallet that keeps a full copy of a given Blockchain in real-time. For example, the Bitcoin Blockchain has full nodes that are always up & running.
But, masternodes are considerably different in their functionality than are normal nodes. The NEXT. Chain is based on the Bitcoin Core Blockchain, with additional modifications. We have also adopted certain features from DASH i.e Masternodes, InstantSend, PrivateSend and Governance Proposals. Our aim is to achieve a fast and extremely cost efficient decentralized network for our exchange. We combine Proof of Work and Proof of Stake consensus algorithms. Our Network is a two-layer network.
Some of the special functions that these nodes perform are:
Blockrewards (45% PoW miners, 45% masternodes, and 10% superblocks. Masternodes receive seniority rewards based on their long term services).
Increasing privacy of transactions
Executing instant transactions
Participating in governance and voting
Enable budgeting and treasury system in cryptos
Passive income for supporting a Blockchain network.
NEXT. Chain masternodes are not standalone. Instead, they are always communicating with other such nodes to uphold a decentralized network. PoS and PoW consensus mechanisms have their individual advantages and disadvantages. PoW is more secure, it requires computer hardware, computational power, and energy costs for upholding a Blockchain network and verifying data. PoS does not require computational calculations or costly computer hardware. Rather, it relies on staking coins to uphold a network. The PoW aspect utilizes the SHA256 algorithm for maintaining the Blockchain, while the PoS part requires Masternodes.
More information on the above attributes can be found below;
Proof-of-Work Proof-of-Stake SHA256 Algorithm Masternodes What does it take to run a masternode?Just like full nodes in a cryptocurrency, MN’s can be run by anyone. However, there is an entry barrier in place to ensure that the system does not become malicious. The entry barrier is what one needs to commit or collateralize certain units of that particular cryptocurrency to run a MN.
This is done to ensure that an MN owner does not cheat or corrupt the system and the best of doing so is by putting this entry barrier where the masternode operator has something at stake.
So, naturally, it becomes less likely that a masternode operator will cheat due to having something at stake. If a masternode operator chooses to be malicious, he will be punished in the form of devaluation of his or her own HODLings.
Now that you have understood the concept of masternode, let’s jump to what one needs to set it up:
Collateral of 25,000 NEXT is required to run one masternode
A VPS or dedicated server to host the masternode, 24 x 7
A dedicated public IP address
Up to 50GB of storage space for the Blockchain
Our verification, including Know Your Customer (KYC) verification
These are pretty much standard requirements for most masternode cryptocurrencies.
Now I know some you might be thinking that in order to meet all the above requirements, one needs to spend quite a bit of money. But, how can one profit?
This takes us to the next section of this write-up, which provides further clarity on the topic.
How are masternodes useful for cryptocurrency investors?Masternodes are very useful for crypto investors because they provide monetary incentives. One can earn weekly or monthly interest on their cryptoholdings by running a masternode.
Our goal is to create a secure and fast system which will act as the backbone for all of our ecosystems transactions. Keeping in mind a circulating supply of around 3 million NEXT, it’s quite possible that our Masternode network will only consist of 30 to 60 masternodes during inception. By combining the best of PoS and PoW, will allow us to avoid security issues experienced by PoS networks harbouring a small amount of nodes.
We see holding a NEXT masternode as a rather exclusive and potentially profitable venture. Additionally, masternodes posses voting rights, which allows them to decide on directions in which our ecosystem grows and develops. Due to the network being rather small at the start, we will aim to restrict the quantity of masternodes obtainable by a single user to 1 masternode. To do so, we will require potential node holders to pass Know Your Customer (KYC) procedures.
Apply for a masternodeWe select masternodes on a first come, first serve policy. Once you apply, and hold over 25,000 NEXT, we will run a check to ensure that all of the requirements to run a masternode are satisfied. As soon as we run out checks, and if you are approved, we will send you further information and custom scripts to set up a masternode.
Please
login to apply for a masternode.
