Nowadays, some people falsely claim that there are only a few ways to make money with cryptocurrencies, such as mining, trading, and analysis. However, this is a fallacy. Because there is another way to earn tokens in the crypto field. Users can start the master node and ensure network security.
For each blockchain or token, it is beneficial to have many servers that contain complete copies of the blockchain, as this helps maintain high network security and decentralization. In addition to making direct contributions to the ecosystem and security of the tokens, the rewards for master node operators due to their enhanced functions are much larger than those of regular nodes.
In addition to increasing capital, the master node also provides investors with the opportunity to obtain guaranteed income from tokens. In other words, dividends. These dividends can be bought and sold on the exchange to make a profit, or they can be invested in another master node, which will then generate more bonuses. In this article, we will discuss with you the top ten masternode tokens.
- 0.1 What is a master node in cryptocurrency?
- 0.2 Master node vs mining
- 0.3 Main node: investment and income
- 0.4 Top 10 Masternodes Tokens in 2020
- 0.5 Conclusion
What is a master node in cryptocurrency?
The master node is a special node in the cryptocurrency network, the protagonist behind high-speed operation and decentralization. The main purpose of the master node is to reject blocks that may be harmful to the entire blockchain.
The master node receives cryptocurrency as a reward for its work, not necessarily Bitcoin, but the cryptocurrency of the network on which it works.
The master node is the security guarantee for certain token networks. On the issue of fraud protection, it performs well on two levels. First, a blockchain attack will require a lot of resources, because the startup of the master node will cost money. Secondly, it is impossible to conduct an immediate and effective attack, because several hours must elapse before the node can work properly.
In other words, the master node guarantees the authenticity of the network. They all confirmed blocks from different countries in the world very quickly. The master node must ensure that the situation is reasonable, the blockchain is correct, and that an attack is impossible. After that, they can vote. Once the necessary votes are collected, the block can enter the chain.
The master node is paid for its existence on the network. It is responsible for its authenticity, the security of cryptocurrency owners’ funds, and the normal operation of the blockchain. Therefore, the more master nodes on the network, the more secure it is relative.
However, for the owner of the master node, this may be unpleasant, because the total reward of the master node is fixed. This means that as their number increases, profits will fall. However, cracking the blockchain will become more difficult. Therefore, the money will be safe.
Master node vs mining
People think that the master node is the same as mining. The main difference is that, unlike master node operators, miners need to purchase expensive equipment for cryptocurrency mining to get rewards. In addition, mining requires a lot of electricity. Using master nodes is an environmentally friendly alternative to mining.
Main node: investment and income
The master node will receive a certain amount of tokens after generating a cryptocurrency block. For example, Dash miners use 45% of their profits to maintain main nodes. Money is evenly distributed among the master node operators. The system is used in networks that use both PoS (Proof of Stake) and PoW (Proof of Work) consensus algorithms.
However, not all master node projects can attract investors’ attention. The return on investment (ROI) index does not mean that the money invested will be quickly returned.
The profit obtained from the master node directly depends on the number of transactions, which means that the tokens will not have liquidity problems on the trading platform. Before investing, you need to study the project carefully and familiarize yourself with information about the ecosystem on the corresponding resources.
The profit from the master node cannot be accurately predicted. Cryptocurrency is volatile. A sudden increase in the market value of a token can help make money or it can lead to nothing. It all depends on the success of the project and the overall market situation. For example, during the launch of the Dash blockchain network, the price of the altcoin was $1. To become the master node, you must have 1000 Dash in your wallet.
Today, the conditions for starting the master node have not changed, but the market price of Dash (at the time of writing) is $112.36. Therefore, the payback period of this investment is about 15 years. Those who invested $1,000 in 2014 have long since returned, and their digital assets have grown a hundredfold.
Some projects have a short payback period. In some cases, you may get your money back within 6 to 8 months, but as we have already mentioned, the long-term predictions of cryptocurrencies cannot be fully trusted.
Top 10 Masternodes Tokens in 2020
This is the ultimate list of master node tokens. These tokens are a good source of passive income and worth investing in.
Token Price Return on Investment Dash (DASH) $111.966.05% Pivx (PVIX)$0.2948.84%Chaincoin (CHC)$064%SmartCash (SMART)$061.59%Syscoin (SYS)$0.02813.32%Zcoin (XZC)$5.3315.58% Phore (PHORE)$0.09312.83%Stakenet (XSN)$0.06225.78%Bulwark (BWK)$0.35307.89%Blocknet (Block) $1.3263.53%
Dash is a cryptocurrency that first proposed the concept of a master node, which supports network operation but requires additional fees.
Among all the blockchains that support users running master nodes, Dash is the most famous and most popular.
Dash provides users with fast transactions and high security. The main goal of the developer team is to create an absolutely decentralized payment solution.
The master node of Dash receives 45% of the block reward. Every 380 days, the overall reward drops by 7%. As a result, we get an analog of bank deposits, which shows the expected profit. Since Dash has been in the market for a long time and enjoys a good reputation, the risk is small.
2. PIVX (PIVX)
Puweicoin is another well-known cryptocurrency. This cryptocurrency is a branch of Dash, which contains the excellent genes of Dash and Bitcoin. Puweicoin’s network is currently using a proof-of-stake algorithm. However, it has been using the proof-of-work protocol for the first half of its existence.
The main difference between Puwei and Dash is that in the Dash network, only the master node has the right to vote, which refutes the basic principle of decentralization. All participants in Puweicoin’s network can absolutely vote.
3. Chain Coin (CHC)
Chain coin is a cryptocurrency based on the proof-of-work protocol and 11 hash algorithms. C-11 is a unique development of chain coins. The token uses a network of master nodes to ensure the anonymity of transactions. Users can withdraw funds at any time.
4. SmartCash (SMART)
The SMART coin is a decentralized economic system managed by the community to achieve mutually beneficial cooperation and growth. Smart coin defines itself as a cryptocurrency that highlights its development from the perspective of social importance. 70% of the rewards for mining blocks are used for project implementation; the remaining 30% is used to reward miners.
5. Zcoin (XZC)
Zcoin is a decentralized digital encryption currency that emphasizes anonymity and privacy. The project started on September 28, 2016. In the initial stage, the project was called Moneta.
The project is based on zero-knowledge proof. It allows one participant to independently verify the accuracy of the report without the need for any verification by the second participant. Users can send and receive tokens without revealing which specific tokens belong to them. This process ensures that there is no information about user activity.
6. ALQO (XLQ)
The ALQO project is a highly decentralized network ecosystem that aims to combine financial and commercial blockchain services into a unified center. The ALQO network is a community-based, open, and accessible peer-to-peer network for storing data and simplifying digital transactions.
The project aims to provide users with unlimited scalability, ultra-fast transaction speed, and almost zero transaction fees. The ALQO network is characterized by low barriers to entry, a convenient user interface, and complete decentralization.
7. Phore (PHR)
Phore cryptocurrency has no special features. This cryptocurrency aims to make transactions as confidential as possible. It confirms the transaction, makes it complete quickly, and finally receives a reward.
8. System currency (SYS)
The system currency is a blockchain platform. It facilitates transactions at a very low cost but mainly focuses on creating the infrastructure needed to attract companies to join the blockchain. System currency provides support for both decentralized and centralized markets.
However, the most important element of the platform is Blockmarket. Blockmarket is a combination of wallet and system currency market. Blockmarket Wallet provides users with the tools needed to buy and sell, and send and receive currency or encrypted messages.
9. Stakenet (XSN)
Stakenet is the first cryptocurrency that allows the use of TPoS (Trustless Proof of Stake Contract) smart contracts. Until recently, the project existed under the name PoSW (Proof of Stake Wallet). XSN coins can be stored in a cold wallet in the Ledger hardware wallet, and the process is simplified to the extreme.
The key point is trustless gambling technology, which involves the use of a so-called shared key, which is passed to the second party providing the stack.
10. MNPCoin (MNP)
MNPCoin (MNP) is a cryptocurrency launched in 2018. It follows the proof-of-stake algorithm, and the received reward is divided into two parts at 60:40 between the holder and the master node operator.
Considering various factors, we must have noticed that choosing a master node is very difficult and maybe risky. Since they are responsible for signing blocks and ensuring that the network is decentralized, investing in master nodes actually means investing in the future of tokens.
As mentioned earlier, it is difficult to make accurate predictions about the future value of cryptocurrencies, so you need to take your own risk.
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