What are Masternodes? Complete Beginner’s Guide
- 2018-06-08 03:00 AM
See someone mention a masternode but had no idea what they are? That's fine, we'll bring you up to speed and explain everything.
So it’s finally here as promised the beginners guide to Masternodes.
So where do we start. As anyone who has been following me on twitter knows that i have recently started building my Masternode (MN) collection. It has been a steep learning curve but a successful one. The aim of this guide is to detail the process i go through in choosing my MN.
For me i chose to get involved with masternodes as a means of passive crypto income. I have a family and a job so i don’t get to trade as much as i would like to these day. Owning a MN means that I’m involved and making gains even when i’m not trading. It’s true that there are far better gains to be made trading and looking for that next X10 coin but i just don’t have that much time anymore.
What is a Masternode anyway ?
A masternode is a full node or a cryptocurrency wallet that is fully synced on the blockchain of whatever coin you choose with MN function availability and is always running 24/7.
Masternodes are considerably different in their functionality than normal nodes in a few ways. They are different because they perform several other functions apart from just keeping the full blockchain and relaying blocks/transactions as a full node does in Bitcoin/Litcoin.
Some of the special functions that these nodes perform are:
- Increasing privacy of transactions
- Doing instant transactions
- Participating in governance and voting
- Enable budgeting and treasury system in cryptos
Ok got all that now how do i make the money…