A masternode is a combination of
The term masternode was first used to describe Dash masternodes, these provided instant send and private send services. The concept of servers providing services to a cryptocurrency network has expanded and these servers are not always referred to in the same way. They could also be typically called nodes.
In this article the term masternodes describes any cryptocurrency which allows the decentralised use of servers, which can generate an income to the owner.
Masternodes process transactions on a network, the data passing through this network is encrypted, however there is still room for masternodes to act maliciously. Masternode operators with skin in the game, (the bond) have an incentive to play by the rules.
Masternodes are also called Bonded Validator Systems.
A server is simply a computer connected to a network which provides certain services. Masternodes can be installed on three types of setups.
These are some examples of cryptocurrency masternode services and which currency use them.
Privacy related functions
Zcoin, Pivx, Dash,, Monetary Unit
InstantSend
Dash, Crown, Monetary Unit
Hashing
Tierion (Lottery based system) (careful!)
Commerce services (not released as of 21/09/2017)
Syscoin
Cryptocurrency Exchange
BlockNet, Exscudo
Smart contracts
Syscoin, BosCoin
Each cryptocurrency has different requirements, in terms of bond and computing power of the server.
The big question!
The ROI depends on the following
Some Examples:
Dash
Pivx
Crown
Masternode systems provide important network services, and they have a genuine utility. However they are also used to create artificial demand for certain coins. Due Diligence is essentially, crucial and a must.
Investigate
source: www.investitin.com
