A description of what masternodes are, how you can benefit from them and how you set up your own masternode

Masternode. A Guide for Beginners.

If you have been active in the blockchain industry for a while now, it’s quite possible you have heard the terms ‘mining’ and ‘nodes’ before. These are the two parts of the core technology behind a blockchain. A blockchain is basically a huge network consisting of many different nodes with miners contributing to these nodes. The miners get a financial reward for contributing to the network, whereas in some cases nodes do not. This changes however when we start speaking about masternodes, a simple variation that many projects have introduced in order to stabilize and secure their network. There is financial compensation for running your own masternode, but it does come at a price. We’ll have a look at the fundamentals for what a masternode is, what can it bring you and how could you start running your own one. 

Running a Masternode

Running a Masternode

Nodes And Mining

In our recent posts, we have already talked about what nodes are and how we can use them for coin mining. Basically, a node is any device with an IP address that participates in a blockchain. Full nodes are online most of the time and store the copy of the whole blockchain, while light ones don’t. It is well known that a crypto user needs to be running a full node to be able to mine coins.