The Concepts of
Such concepts as "node" and "masternode" may not be fully understood for new members of the cryptocurrency community. There is nothing complicated and intricate in this. In this article we will not only describe in detail what it is, but also explain how to earn on this. Contents: (please, click the topic to scroll down to it)
  1. The concept of "node"
  2. What is a full node and a masternode?
  3. How to start earning on this?
  4. Step-by-step algorithm for starting a masternode
  5. Conclusion

1. The concept of "node"

In order to become the owner of any cryptocurrency, you need to start a wallet first. Digital wallets come in different types:
  • cloud;
  • desktop with incomplete database;
  • desktop with a full database;
  • cold (hardware or paper).
So, the node is a truncated version of the desktop wallet, which the entire registry data is not stored on. Now everything is pretty simple, let's go further.

2. What is a full node and a masternode?

Obviously, the full node is a desktop version of the wallet, on which the whole database of a particular blockchain is stored. Typically, this is a fairly large amount of data, which takes more than 100 - 150GB. A full node can become a masternode if certain conditions are met that vary depending on the network. In order to get a similar status, you need to connect a remote server, which will store a wallet with the full version of the blockchain. This is necessary, in order for a masternode to be online around the clock and without interruption. And also you need to put a certain amount of money on this wallet. The main task of such wallets is to confirm transactions, usually by PoS protocol, but this is not an obligatory condition, it all depends on the specific coin. Speaking very simply, a masternode is a miner which is responsible for the correct operation of the network, and in exchange, the owner receives a passive income.

3. How to start earning on this?

That's how smoothly we got to the most interesting part of our today's topic, so the income from a masternode. As it was already said above, organizing a masternode you can count on a certain earnings. But in order to begin receiving substantial dividends, it is necessary to have a fairly impressive start-up capital. The thing is that the earnings on masternodes are arranged according to the principle of charging interest on the reserved amount of the deposit. It is worth noting that in each network these figures vary. For example, let's take one of the most promising coins in the sphere of anonymity - Dash. In its network, in order to create one masternode, you need to put 1 thousand coins as a deposit. For the found and confirmed block, 45% of the reward (3.35 dash) is shared among all masternodes. If you are looking for a truly passive income formula in the cryptocurrency industry, then this is it. You simply deposit a certain amount of funds into your account, just set up the process once and in the future receive interest from your deposit. It is very important that you can withdraw your coins at any time; they are not reserved for a certain period, but are available for withdrawal at any time.

4. Step-by-step algorithm for starting a masternode

It should be understood that in connection with the huge number of different coins that are built on different algorithms and have their own characteristics, the only manual for launching a masternode simply does not exist. It all depends on the specific project in which you want to work, but we all the same singled out certain requirements that are identical almost everywhere:
  • first you need to allocate a separate PC for this case or better a server that will have a static IP;
  • you should take care of a stable Internet signal;
  • install the wallet and put the necessary deposit on it;
  • write the generated access key in a safe place;
  • take care of the security and timely copying of data to external media.

5. Conclusion

Masternode is the only truly passive and stable way of earning money in the field of digital coins. In order to organize a masternode it is necessary to initially invest a significant amount of money. For example, in Dash it is 1,000 coins, which is $232 * 1,000 = $232,000 at today's rate. These funds will be available to you at any time, which is an undeniable advantage of this kind of earnings. Subscribe to The Coin Shark news in Facebook: https://www.facebook.com/coinshark/