As one of the early superfans of Bitcoin and cryptocurrencies, I saw firsthand the rave around masternodes during the 2017 bull run. From increased media attention to a significant influx of retail investors, and the ICO craze, masternodes were one of the hottest kids on the block. Hence, many new crypto projects incorporated masternodes in their blockchains.
Thank you for reading this post, don't forget to subscribe!But much like the gold rush of the 1800s, many of these early projects are no longer functional, reducing the popularity of masternodes. However, there are still tens of active masternode projects, including popular ones like Dash, PIVX, all Decenomy project like Sapphire, 777, Flits, and several others projects.
In this article, we’ll run through the basics of masternodes and how DECENOMY is utilizing the concept in its ecosystem.
Masternodes Explained
A masternode is simply the combination of two words – “master” and “node.” While we all have an idea of who a master is, in networking, a node is an electronic device that is connected to a network. This device has the capacity to create, receive, store, and send data within the network.
To make things a bit clearer, a master-node is just one type of node. There are others like “Full” Nodes, “Light” Nodes, “Miner” nodes, “Validator” nodes, and many others. Although a node’s nomenclature varies from blockchain to blockchain, it is typically based on its function within the network.
For instance, while a light node stores limited information, a full node hosts and synchronizes a copy of the entire blockchain. Light nodes are designed to operate in environments with limited storage and processing power. They are faster and more efficient but rely on full nodes for validation.
A masternode, on the other hand, is actually a type of full node since it stores a copy of the blockchain. However, a masternode may perform additional functions such as transaction validation, private transactions, governance, and other operations that may need to provide consensus on the network. They are rewarded with a portion of the block rewards for these added functions.
In general, a masternode enhances the functionality and security of a blockchain network.
Masternodes in DECENOMY
Short for “DECEntralized EcoNOMY,” DECENOMY is an innovative solution that seeks to transform traditional economic models by leveraging advanced technologies such as blockchain and artificial intelligence. Notably, the platform envisions “a future characterized by fairness, inclusivity, and connectivity.”
One of the key building blocks of the DECENOMY ecosystem is masternodes. The blockchain project currently has seventeen unique cryptocurrencies, each targeting a different sector of the economy. These digital assets rely on a central blockchain development known as the DECENOMY Standard Wallet (DSW).
Although DECENOMY masternodes do not currently perform any added functions besides securing the network, there are a number of possibilities – including governance – as the project evolves. Notwithstanding, a more intriguing feature in their implementation of masternodes is “Dynamic Collateral.”
Summarily, masternodes are one of the ways to join the DECENOMY ecosystem and earn rewards while at it. Interested individuals can directly deploy a masternode using the DECENOMY Multinode Script or on the Flits wallet app.
