What are Masternodes and how are they different from mining?
You’ve heard about them, and they usually are more expensive compared to traditional mining. But what are masternodes?
What are masternodes
A Masternode is a cryptocurrency node (computer) that has chosen to support a blockchain network by hosting a complete copy of a coin’s ledger.
Why you should run a masternode?
Having said that, here are the reasons you should consider when thinking about running a masternode:
- You earn passive income
- Transactions have increased privacy
- All transactions are instant
- It enables a user (node) to participate in governance as well as voting
- It enables cryptocurrency systems related to treasury and budgeting
And, while all Masternodes can perform the tasks shown above, the quality of implementation may slightly differ from case to case. This is based on the way with which the Masternode has been implemented in a certain cryptocurrency.
Which cryptocurrencies run masternodes?
Currently, numerous projects have deployed Masternodes within their networks. They include:
- Dash (DASH)
- Bata (BTA)
- Crown (CRW)
- ChainCoin (CHC)
- Vcash (XVC)
- ION (ION)
- PIVX (PIVX)
- Monetary Unit (MUE)
- XtraBytes (XBY)
- Diamond (DMD)