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      What Is A Masternode
      What Is A Masternode

      If you are interested in cryptocurrencies and are also interested in passive income, then masternodes are right up your alley.

      What is a Masternode?

      Masternode is simply a cryptocurrency full node or computer wallet that keeps the full copy of the blockchain in real-time, just like you have Bitcoin full nodes and is always up & running.

      But masternodes are considerably different in their functionality than normal nodes.

      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/Litecoin.

      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

      These masternodes are not standalone but they are always communicating with other such nodes to make a decentralized network and are often referred in short form as MN.

      Where are Masternodes found?

      Masternodes are primarily found in Proof of Stake (PoS) blockchains, but examples of Proof of Work( PoW) masternodes do exist. These are computers which process transactions on the blockchain and as a result are rewarded with coins from the blocks being created. Nodes sit on the blockchain, normally within a queuing system, and when they reach a certain position in this queue can be selected, at random, to be rewarded for participating within the network. As a result of this rewards can appear at different intervals but usually average out over time.

      Why Should I Run a Masternode?

      Masternodes provide the opportunity to invest in Cryptocurrencies with the added benefit of earning guaranteed extra coins in addition to gaining exposure to the large potential increases in value that can come within the Cryptosphere and owning cryptocurrencies.

      These coins are awarded through running a node and as covered later in this article these rewards can also be used to generate rewards on top of your rewards. Great eh?

      So, what can go wrong?

      Well, as with any investment there are risks and these can be significant within the Masternode world. Since the beginning of 2018 there has been an explosion in the number of Masternode coins and unfortunately this has also attracted a fair number of scammers to this space.

      Therefore this article comes with a word of warning. Be very cautious of any Masternode coin offering very high ROI percentages — anything in the 1,000% or above bracket really needs to be treated with caution and any coin that does not have a utility as well should be avoided in the early stages of its life.

      How to choose a Masternode

      Ok, so this is where the hard work begins, which one do we choose?

      The process should go something like this.

      • Check or
      • Look for a coin with good ROI and cost
      • Visit the website to look at the roadmap and coin specs and coins needed for a MN
      • Visit the github and see if the dev is active
      • Check social media to see if there is an active community there.

      With these simple steps you can differentiate between most scams and legitimate projects, and also find which masternode would best suit you.


      With all these points, you can see that a Masternode is an unsung hero in the crypto-world. However, you may be pondering on the cryptocurrencies that are safe to run a Masternode and the ones that also support the operation of Masternode.


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