Masternodes Are The Future Of Cryptocurrency And Opportunity Now
All computers, wallets and miners connected to a blockchain network are referred to as nodes. The nodes are what powers the network but not all nodes are the same. In regards to Bitcoin a “full node” will support all functions of the network where a lightweight node will only mine. The difference is that a full node will use more electricity and computing power than a lightweight nodes but will, in the end, make less money because a lot of the computing power is used for hashing, not mining.
The issue has led to an imbalance within may proof-of-work blockchains in which more power is used for mining, and running the mining pools, than for support of the network. If that power were used to operate Bitcoin instead of hashing an algorithm Bitcoin would be a lot more valuable than it is now.
In a masternode network like Dash there are lightweight nodes and full nodes (the masternodes) and they are incentivized in different ways. The lightweight nodes are the basic miners, they support partial function of the network and receive a mining reward for doing so. The masternode is a full node that supports the full function of the network. This means they can facilitate transactions far faster than a “simple” blockchain can handle.
Dash is the first and most important of the Masternode cryptocurrencies. It is based on the Bitcoin protocol but uses PoS and masternodes to function. To open a masternode an investor needs 1,000 Dash tokens, worth about $200,000 at today’s prices, but that’s not the only way to make money, you can stake it for less. There are also other masternode type cryptocurrencies that can be bought for much less.
Dash masternodes also help with other functions like coin swapping which is a means of laundering tokens between transactions so they are untraceable and anonymous upon receipt. Because the masternodes play such an important role in the network they are rewarded with the lions share of all mining rewards.
The reason why an investor will want to open a masternode is because the fee is equal to 7% ROI (some masternodes pay 1000’s of % in ROI) and is far more reliable than mining PoW. Regarding the future of blockchain, PoS networks are more sustainable because they rely on fees and not the creation of new tokens. When BTC is all mined out it will have to switch to some form of PoS in order to stay alive.
Traders can take advantage of this now, while Dash is trading at long-term lows, and ride it to profits. The charts are set up for a massive rebound, all it will take to start a rebound is one piece of good news.