the first method is used by Dash. In the Dash ecosystem, it is used as an anonym bound transaction validator mechanism. The intention is bound here is bound by contract, in accordance with the stipulated provisions.
In the Dash ecosystem, it has a special function to achieve high privacy in transactions. The method, is a method that is used specifically in achieving it. So quite different from the network for the mining ecosystem, the Masternode network is more on maintaining a special network in the use of full privacy transactions of its users
Dash, has implemented a protocol for this method within its protocol. How it works may be more like the proof of stake. So if someone wants to contribute to masternode, then someone must have a certain amount of Dash with a certain nominal. In this Dash ecosystem, to become a Masternode must have 1,000 Dash in its wallet.
One way to set up the device is to download the Dash core wallet on your device. But in addition, now there are many third-party services that can be used for masternode. So just stay hire just a server to be able to run the masternode.
One important note, that a number of 1000 Dash above, should continue to remain in your wallet. If a 1,000 Dash is used, then you can no longer function as a Masternode.
In the Dash ecosystem, someone who has contributed to the Masternode will generally gain a share of the 45% gains from the mining reward block. The other 10% is used to finance the reserves within the ecosystem. In that case, there is a special operator who will later act in determining the voting later, about the allocation of the use of reserve funds in improving its network.
So basically, within the Dash ecosystem, the reward block will be 50% shared for the ordinary mining ecosystem, and the remaining 50% for the network in the Masternode.
If we look at the picture above, the method basically works just like running full node inside the crypto mining ecosystem. Implementation within the Dash ecosystem serves as a more commercially attractive mining incentive.
If we look at a function that is more or less similar to running a full node in a mining ecosystem, it is also useful in protecting blockchain dash from various attacks. The implementation of the 1,000 Dash cost, used as a special requirement to keep the network of the Community, remains decentralized.
In addition to functioning technically for its ecosystem, it also becomes a commercial function. The hope, so that the ecosystem becomes more attractive to many investors. The 1,000 Dash is certainly not a small amount.
The amount requirement becomes a method of how the Dash ecosystem remains safe and healthy, with special incentives in accordance with its profitability. Then the 1,000 Dash count becomes a guarantee that the Dash ecosystem will still comply with the prevailing consensus, the full node in its network is expected to continue to apply honestly.
In addition to useful reasons for mining ecosystems, and commercial methods of increasing the adoption of their ecosystems, the Dash method basically is implemented to support the following features:
Moreover, the implementation of the method is considered to bring many benefits. Within the mining ecosystem, for example, the Masternode has a role to keep the mining ecosystem in effect decentralized. The method is also expected to minimize the centralization in pool-pool mining in the mining ecosystem.
Given the large initial cost, there is an increase in stability as well as network loyalty. Of course, because it brings a larger dividend, thus minimizing the decline of nodes in its mining ecosystem.
The most make it more interesting, of course, Masternode is also seen as an investment opportunity as well. This is what makes masternode also serve as a commercial method in the end in order to increase Dash adoption.
Dash indeed has started by implementing Masternode. However, in the end, many other Altcoin variants are also implementing the same thing. Some are applied for reasons of full privacy, for the crypto exchange ecosystem, smartContract, as well as for ecommerce services.
Some altcoin variants that have implemented the Masternode include Syscoin, PIVX, BOScoin, and many others.
Want to Become a Masternode? Here's What You Need
Or if you do not have the time and trouble to set up a server for that method, you can more easily just use the services of some of the following third parties:
Reference : https://coincentral.com/what-are-masternodes-an-introduction-and-guide/
