What is your understanding of a Masternode?

[FrankWatsonJr]

I believe there is lots of misunderstandings happening of what is a Masternode.

Please feel free to share your version and understanding of a masternode


Article from StakeAndNodes.com:
A masternode is an always on server which secures the network by locking up a significant number of coins as collateral to participate in the consensus protocol for a decentralized network. The coins are "locked up" in the network and while functioning as a masternode the coins can't be moved. Keep in mind that no one is required to function as a masternode any longer than they desire to.

The rewards(ROI) allocated to masternodes are normally significantly higher than staking only but this varies by each cryptocurrency. To run a masternode you are normally required to run a high uptime server(VPS), masternode wallet program on the server and lock up exactly the required collateral amount (e.g. DASH is 1000 Dash coins). There are services(like NodeShare) that make masternode hosting easier for inexperienced users once the collateral amount is obtained for a nominal service fee.


Content source from: https://www.stakeandnodes.com/what-is-a-masternode


Please collaborate here

- Frank Watson Jr.
-SetupMasternodes.com

[Alpha0One1]

In a nutshell, a masternode (MN) is like a miner as well, except that you need to lock-in the required amount of coins to start a masternode to be able to earn rewards.
The Masternode model was started by Dash. To run a Dash MN, it will require you to lock 1,000 dash coins.
Masternodes also do a lot more than just keep the blockchain and consensus, they also perform governance voting functions and privacy sending.
Best to run a MN in a VPS to ensure 24x7 uptime.

If you want to learn setting up MN's. You can start with those cheap dash clones that you can see in this website.
https://masternodes.online

[asriloni]

In a nutshell, a masternode (MN) is like a miner as well, except that you need to lock-in the required amount of coins to start a masternode to be able to earn rewards.
The Masternode model was started by Dash. To run a Dash MN, it will require you to lock 1,000 dash coins.
Masternodes also do a lot more than just keep the blockchain and consensus, they also perform governance voting functions and privacy sending.
Best to run a MN in a VPS to ensure 24x7 uptime.

If you want to learn setting up MN's. You can start with those cheap dash clones that you can see in this website.
https://masternodes.online

Lol OP has created the same explanation like you dude. but basically MN consumes less electricity compared to the POW system which concentrate its power to build the hash power by using a lot of GPU or even mining rig just like ant miner.

[FrankWatsonJr]

In a nutshell, a masternode (MN) is like a miner as well, except that you need to lock-in the required amount of coins to start a masternode to be able to earn rewards.
The Masternode model was started by Dash. To run a Dash MN, it will require you to lock 1,000 dash coins.
Masternodes also do a lot more than just keep the blockchain and consensus, they also perform governance voting functions and privacy sending.
Best to run a MN in a VPS to ensure 24x7 uptime.

If you want to learn setting up MN's. You can start with those cheap dash clones that you can see in this website.
https://masternodes.online

Lol OP has created the same explanation like you dude. but basically MN consumes less electricity compared to the POW system which concentrate its power to build the hash power by using a lot of GPU or even mining rig just like ant miner.

I know right? lol

MN does not even consume much of electricity except when it comes to running the server and local wallet. The local wallet doesn't need to run 24x7 either

[BitcoinHodler]

my understanding is that masternode is a bad design if you want a truly decentralized network because that will only limit the number of real nodes to a handful instead of anybody who wants being able to run a node. and the bigger the network gets, the more costly will be the masternode and it limits (centralize) it further.

[roosbit]

Hi frank does this mean that if we compare mining and masternodes, it's safe to conclude that MNs are centralized were as mining can either be centralized or decentralized

Second question do masternodes phase out mining rigs and everything related to it?

[canaveralnonie]

Can I ask something ( a little bit detail about nodes ), what is the difference between " all nodes and master nodes"?

[FrankWatsonJr]

up for others

[bayu7adi]

In a nutshell, a masternode (MN) is like a miner as well, except that you need to lock-in the required amount of coins to start a masternode to be able to earn rewards.
The Masternode model was started by Dash. To run a Dash MN, it will require you to lock 1,000 dash coins.
Masternodes also do a lot more than just keep the blockchain and consensus, they also perform governance voting functions and privacy sending.
Best to run a MN in a VPS to ensure 24x7 uptime.

If you want to learn setting up MN's. You can start with those cheap dash clones that you can see in this website.
https://masternodes.online

the best answer, if I may add, to understand easily from MasterNodes is an analogy like a POS system where someone will get money when he saves some money in his wallet,
but the real MasterNodes is not a POS, but POS is definitely included in the masternodes system

#POS = Proof Of Stake

[FrankWatsonJr]

bump for more insights

[sidkz]

In my understanding, you send a certain number of coins to the service, where these coins are blocked, for a certain period, when time runs out, you are returned coins with a reward.

[disconnectme]

To me, Masternode is like a Staking of coin but with more guarantee of using your coins to secure the network. For me the days of Masternodes are over, it is a good experiment but it has been shown that with more coins entering the market, the incentive to hold diminished as reward and price plateau

[Herbert2020]

the biggest problem with masternodes is exactly the fact that you have to lock up a large amount of money in an online wallet when large amounts should always be locked up in an "offline wallet" instead. this also has another big risk which sometimes is ignored is that you are going to be bag holding a large amount of an altcoin, an altcoin that is going to enter its dumping phase sooner or later and when it does you will end up losing a lot of money because you have a bigger money at "stake".