Shared Masternodes offering simple shared investment opportunities in Cryptocurrency Masternodes.
In the crypto, there are several ways by which you can make profits and earn money.
One such way of earning in cryptosphere is by running a masternode, but before I tell you how to do that it is imperative that you first understand what a masternode is.
What Is A Masternode?
Masternode is simply a computer that keeps the full copy of the blockchain for an particular coin/token in real-time and is always up and running.
But masternodes are different because they perform several functions apart from just keeping the full blockchain and relaying blocks/transactions as a full node does in say Bitcoin, Dash or Litcoin does.
Some of these other functions that these nodes perform are:
- Increasing privacy of transactions
- Enable instant transactions
- Participating in governance and voting
- Enable budgeting and treasury system in cryptocurrencies
These masternodes are not standalone but they are always communicating and virtually linked with other nodes to form a decentralized network.
What Does It Take To Run A Masternode?
Masternodes can be run by anyone, however, there is an entry barrier in place to ensure that the system doesn’t get malicious. The entry barrier is what one needs to commit or collateralise in certain units of that particular cryptocurrency to run a masternode ie Zcoin is currently 1000 coins each coin value at today’s rate is £40.3730 making a masternode £40,373.00 you still own these coins and can remove them at any time but if your masternode wallet goes below 1000 the Node will stop working.
This is done to ensure that a masternode owner doesn’t cheat or corrupt the system and the best of doing so is by putting this entry barrier where the masternode operator has something at stake in the whole game.
So why would you run a Masternode?
A person running a masternode is incentivised, just like earning a monthly or weekly interest on your crypto holdings.
Another thing to understand here is that you should choose the right currency for investment if you are solely investing for running a masternode. You should compare the percentage yield against the investment. In short, calculate your Return On Investment (ROI). A great site to see ROI of various masternode is Masternode.pro, please bear in mind ROI shown is historical and can vary up or down just as your currency can.
If you wanted to run a Masternode you need:
- A minimum amount of coins of that particular crypto.
- A VPS or server to host that wallet for 24 x 7
- A dedicated IP address
- Storage space to save the blockchain
- An understanding of DOS, Unix, SSH and command line to install the masternode
- Server maintenance
- An appreciation of online security