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.
However, mining coins aren’t the only way to earn money in the blockchain field, and sometimes it’s seen as quite ambiguous. After all, crypto coins do have high volatility, and if a coin’s price suddenly significantly falls, a situation can occur, where your expenditures on hardware and power bills would exceed the total value of the coins you’ve managed to mine. Luckily, there are other ways to make money and stay in the crypto lane. In this article, we will be talking about masternodes and how to use them.
What Is A Masternode
To run a masternode, you won’t have to worry about renting a place for all your hardware and installing cooling systems. Basically, a masternode, just like a regular full node, is a server or computer with a static IP-address, fully synchronized with the blockchain and working non-stop. It accepts transactions and provides decentralization. Their functions might differ depending on the cryptocurrency: DASH masternodes, for example, help carry out instant transactions. Other masternode tasks include, but aren’t limited to increasing privacy, governance and voting control, and enabling budgeting and treasury system in cryptos.
Then again — just like a regular node, a masternode can be run by anyone. However, there are certain barriers and limitations to make sure the system doesn’t get malicious. First and foremost, to run a masternode, you’re going to have to deposit a certain amount of your target coin. This needs to be done, so that you, as a masternode operator, have something valuable at stake and therefore are less likely to cheat. The minimum amount of coins differs from crypto to crypto (for example, 1000 DASH units for Dash, 10000 PIVX units for PIVX). Should you want to stop running your masternode, you get your deposit back.
Earning Money With A Masternode
After that, you’re going to need a VPS or server to host your wallet, as well as an IP address and some storage space. The question is, now that you’re all set, how exactly are you going to earn money with your masternode? In fact, it’s really easy. Once you launch the masternode, as soon as it starts performing its tasks, you’ll be getting rewarded by the network. The whole thing can be seen as receiving interest on your holdings. The incentive model depends on the cryptocurrency you’re working with, so it might be a good idea to do some research to figure out which coin will bring you the most money.
It’s important to remember that not all cryptos have a masternode system. As of summer 2019, the four most promising coins with a masternode system are Dash (DASH) with a minimum masternode amount of 1000 units, PIVX (10000 units), Blocknet (BLOCK, 5000 units), and Zcoin (ZXC, 1000 units). The amount of money you can earn from owning a masternode in these blockchains varies from $5 to $55 daily and from $2000 to $20000 annually.
Have we convinced you to set up your own masternode? Great! You can always obtain the desired cryptocurrency on our other platform, ChangeNOW: we offer fast and secure service, 24/7 customer support and most favorable exchange rates. Not so sure yet, but would like to try getting into blockchain anyway? Then NOWNodes is what you need: we provide access to full nodes of most promising and popular cryptos, allowing the user to try working with blockchain without having to set up their own full node – let alone a masternode. Join NOWNodes now and find the blockchain that works best for you and decide whether you want to set up a masternode for yourself!