is defined as a governing hub in some cryptocurrency networks. It requires an initial collateral of tokens to operate. Masternodes play a role in certain block chains, at the time of the validation of the transaction.
Dash, at the origin of the concept
(formerly Darkoin) was born in 2012 but is only presented in 2014 by Evan Duffield, founder of the project. Originally the ambition of the developers was to offer a totally decentralized digital alternative to cash by taking three of its main attributes: its fungibility (ease of use), its speed and its anonymity. The Bitcoin protocol did not incorporate these suggestions for improvement, so Evan Duffield decided to implement them himself in a new network: DASH.
Dash is a digital "currency" that allows fast, low-cost transactions without relying on a central authority. It offers two optional modules for anonymous and instant transactions called PrivateSend and InstantSend. These features are implemented through a network of dedicated servers called "masternodes". This masternode network makes possible many remarkable functions that are not available on conventional blockchains.
The role of the masternode in the blockchain
Depending on the project, the masternode network will not have exactly the same function.
How to set up a masternode?
Setting up a masternode is done in several steps. The first of them consists in acquiring a certain quantity of tokens, which is called collateral
. This collateral acts as an entry ticket, it functions as a guarantee. As soon as you want to sell your masternode, it is returned to you except in special cases such as Sinovate (SIN). The collateral is different depending on the project: 1000 tokens for Dash
, 15000 for Stakenet
, 42 for Horizen,... this rule is fixed by the project in question.
Once the collateral is gathered, a series of more technical steps are to be performed to configure the masternode. Only once the configuration is complete will your masternode start working and generate rewards
Steps to make a masternode
Here are the different steps to set up a MasterNode :
- Get the collateral
- Install a wallet corresponding to the masternode on your computer and synchronize it with the blockchain.
- Transfer your collateral to this wallet.
- Create a node address in your wallet and transfer your tokens to this address.
- Install your node by choosing to host it on a server located in a hosting center (e.g. Scaleway, Vultr,...).
- Synchronize the server with the blockchain.
- Configure your MasterNode in your Wallet PC and start it.
- Receive your rewards at regular intervals.
Note that in addition to this list of actions to be carried out, you will have to carry out maintenance work that is more or less complex and energy-consuming depending on the project.
The service of Just Mining frees you from all these technical steps, we take care of each step, from the purchase of the collateral to the resale of your tokens.
Contribute to the network
Although here we focus on the investment aspect, it is good to know that by investing in a masternode, you contribute to the proper functioning of the blockchain of the chosen cryptocurrency. Also, blocking the collateral helps stabilize the price.
A new way to save
New economy, new savings
The revolution of the blockchain and cryptocurrencies heralds a new era for the economy and the financial system. And a new financial system means a new way of investing and growing capital. Masternodes perfectly embody these new investments proposed by many crypto-projects.
At a time when traditional savings products are struggling like the famous French Livret A saving account, whose yield no longer even exceeds 1%, these new ways of saving have everything to appeal to the most experienced investors as well as to the more modest individual who simply wants to make their money work.
Having a passive income
Saving properly is becoming more and more difficult and traditional savings products are no longer attractive. Yet the French remain among the biggest savers in Europe, showing a desire and a culture of investing their money and earning a passive income.
In this sense, the masternode impresses with its flexibility. Indeed, there are different masternodes, each with different characteristics. In this way, depending on your investment objectives, it is possible to find the masternode that corresponds to your expectations. For example, a Polis masternode will be perfectly suited to a person looking for a ROI over the short or medium term thanks to its annual ROI of 30% (at the publication date of 09/06/2020), whereas a Zcoin masternode will be more suited to a long-term investment.
The ROI (Return on Investment) is given as an indication and reflects the current state of the network, just-mining cannot guarantee its maintenance or evolution.
At Just Mining, we give you the choice to acquire a full node or a shared node
. This option has the advantage of allowing you to both diversify your investments and adapt to all portfolios.
For the most modest budgets, our shared masternodes allow you to invest in cryptocurrencies from less than 50 €
. A great entry point for neophytes or for those who want to diversify their portfolio by testing different projects without breaking the bank.
The Just Mining Service
Just Mining now offers the first plug&play masternode service
for confirmed and unconfirmed investors in the blockchain. All the more complex technical part is handled by our teams to allow the investor to focus only on his return on investment. We take care of the server hosting, the technical configuration of the masternode, the wallet management and the masternode maintenance. Thanks to an intuitive interface on the Just Mining website, the client receives directly his rewards in real time on his Just Mining wallet in the currency of the chosen masternode.
To go further
Would you like more information about masternodes? Watch the video of our CEO, Owen Simonin (Hasheur) : Are masternodes in 2020 profitable ? (FR)