Today we’re talking about a technology that is very close to our hearts - masternodes! If you’re new to cryptocurrency, welcome! This article is an overview of masternodes, what they do, how they do it, and what they could facilitate in the future!
June 22, 2021 · 4 min read
How does a masternode work?
However, staking is just one piece of the puzzle when it comes to Divi’s proof of stake network. The Divi Blockchain uses a balance between masternodes and staking nodes, to achieve security and decentralization of the network. The reason Divi has two types of nodes is to achieve a balance between a decentralized and centralized system. There are many processes that are more efficient when centralized, but less secure. By having two ecosystems, we can create centralized processes on our masternodes but remain incredibly decentralized. It’s a win-win for both the users and the blockchain.
Terminology in the crypto-space is not ubiquitous. The term masternode may refer to either a proof of stake or proof of work entity (Bitcoin masternode). For the purposes of this blog, we will be talking about the roles of masternodes in proof of stake protocols, as that is most pertinent to Divi.
Without diving into complex code, or blockchain development, we can still get a good idea of what masternodes can do, and what makes them distinct from staking nodes. When you really break it down, masternodes are simply staking nodes that have additional privileges or abilities. Here at the Divi Project, we like to refer to staking nodes as the muscle of the network, and masternodes as the brain, as they take on advanced organizational functionality.
Granted, these instructions will vary depending on the ecosystem you are looking to support, but there are consistent themes across projects. Since we utilize masternodes, let’s use Divi as an example. To run a masternode, there are a few criteria. Beyond this, there are project-specific requirements, but this is the basic structure of many:
The work that masternodes perform is invaluable to the network’s security. If you complete this 'work', and act in the best interest of the network, you are rewarded with ‘block rewards’. Not only can you earn very good rewards, but you’re also not locked into a contract or ‘fixed-term’. If you’re interested in starting a masternode, we’d love to have you on board. The more the merrier.
If you’re interested in viewing masternode rewards on the Divi network, check out our masternode tier calculator.
In the ever-changing world of blockchain development, predicting the future is near-impossible. What we do know is this: Masternodes will provide us with the opportunity to move ever-closer to satoshi’s vision of a world where truly peer-to-peer, sustainable currencies exist. Whether it’s advanced on-chain governance, rapid global transactions, or something new and exciting, we’re confident in the future of the technology.
If you’re looking for a list of the best masternode projects to start your journey, look no further. We love our masternodes, but there are others in the space you can check out - we’ve included some helpful links to get you started.
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June 22, 2021 · 4 min read