Dashboard Quick Navigation
Masternode Coins -
What are masternodes?
Masternodes are important actors in cryptocurrency networks, often operating in parallel to
regular nodes. Not all cryptocurrency networks use masternodes, and not all masternodes
work in the same way. In 2014, the cryptocurrency project Dash was the first to implement
the masternode role, using a “Proof-of-Service” system alongside the commonly-used Proof-
of-Work (PoW) mining.
Masternodes hold additional functions and responsibilities to regular miners on a network.
For this, these nodes earn more than miners on the network. Each masternode network
operates with its own unique features. That said, masternodes generally provide some of the
same functions across different networks. This includes special rights with voting on protocol
updates and the responsibility of deploying network updates quickly. They also operate in
such a way that they remain in sync with each other, collectively serving as a source of
information for anyone wanting to interact with the network. Moreover, if anything goes
wrong with the blockchain network, it is expected that masternodes will be the first to know.
Furthermore, operators will need to dedicate time and usually a large stake or initial capital
provided upfront as collateral. This is to incentivize honest behavior, with the risk of losing
the collateralized funds should masternodes try to cheat the system. This works in a similar
way to mining or staking. However, there are some key differences.
Masternodes and Mining
The first difference between masternodes and mining is often the upfront requirement, with
masternodes often requiring a higher investment. However, Masternodes can often operate
more functions than mining nodes. Moreover, another difference between masternodes and
mining is the lack of hardware needed to become a masternode operator. Miners often
require expensive mining gear, whereas hosting a masternode requires a stake as
collateral.
It is a common misconception that hosting a masternode is the same as staking or as an
add-on to Proof-of-Stake (PoS). However, this is not true as Proof-of-Work (PoW) chains
also use masternode systems. Furthermore, whereas PoS consensus models function much
like a lottery, with the chance of receiving rewards, masternodes receive rewards with a
guaranteed income.
Also, rewards for masternodes are subject to a lockup period until participants decide to stop
being a masternode. This is unlike mining nodes, who often receive rewards that are freely
tradable. Masternodes will receive their full collateralized stake and locked rewards together
if an operator decides to no longer host a masternode.
What are Masternode Tokens?
Masternode tokens, or masternode coins, represent cryptocurrency networks that use a
masternode system. The masternode tokens and coins are the native cryptocurrencies
received by the masternode as rewards. Masternodes are responsible for verifying
transactions among other functions on the network and thus receive a percentage of
rewards for every block issued on the network.
The number of rewards received varies with each masternode system. Masternode token
rewards depend on factors such as the consensus model, the number of masternodes, and
the number of miners in the network. Moreover, masternodes are expected to operate 24/7,
and therefore, receive rewards frequently.
The frequency of payout of masternode token or masternode coin rewards again is individual
to each network. This could be daily or multiple times throughout a day. However, as
previously mentioned, any earned rewards must be locked with already staked masternode
tokens or coins.
Masternode coins
1. Helium (HNT):
Helium is a digital currency and blockchain network that focuses on improving supply chain
logistics in the construction and infrastructure sector.
2. Dash (DASH):
Dash is a digital currency that enables anyone, anywhere in the world to make quick, easy
and cheap payments at any time without going through a central authority. Based on a
decentralized peer-to-peer network, and secured by strong cryptography, Dash offers a safe
and user-friendly payment method without barriers. Dash is portable, inexpensive, divisible
and fast digital cash for both the internet and everyday life.
3. XinFin (XDC):
XinFin is an enterprise-ready hybrid Blockchain technology company optimized for
international trade and finance. The XinFin network is powered by the native coin called
XDC. The XDC protocol is architected to support smart contracts, 2000TPS, 2seconds
transaction time, KYC to Masternodes (Validator Nodes).
The XDC Chain (XinFin Digital Contract) uses XinFin Delegated Proof of Stake (XDPoS),
with the intention to create a ‘highly-scalable, secure, permission, and commercial grade’
blockchain network. XinFin mainnet token XDC also creates an opportunity to utilize XinFin’s
real-world use-cases such as TradeFinex.org, helps small and medium businesses or
institutions originate their own financial requirements in a digital, fully structured manner so
that they can distribute them to the bank or non-bank funders themselves using a common
distribution standard.
4. Velas (VLX):
Velas is a self-learning and optimizing blockchain platform for secure, interoperable,
extremely scalable transactions and smart contracts. Velas uses AI-Operated DPOS
(AIDPOS) consensus to secure the blockchain for high volume transactions processing
without sacrificing decentralization, stability and security.
5. Sapphire (SAPP):
The Sapphire Core is a platform for masternodes. It is designed to reward content writers by
allowing users to tip and upvote masternode articles posted on the platform. Top content
writers with the most upvotes per month will receive an additional SAPP bonus for the
month.
6. Syscoin (SYS):
Syscoin is a cryptocurrency that offers near zero cost financial transactions like Bitcoin and
provides businesses the infrastructure to trade goods, assets, digital certificates and data
securely. Syscoin supports a broad variety of marketplaces, ranging from the fully
decentralized marketplaces to centralized business markets.
7. PAC Global (PAC):
PAC Global is a digital network connecting not only merchants and consumers, but business
enterprise as well, with a fast, secure and more cost-effective way to send digital
transactions globally.
PAC Global has a new Board of Directors whose broad experience extend across the
Business, Finance, Regulatory compliance, Software and Blockchain Development fields.
8. NewYork Exchange (NYE):
The New York Exchange Coin uses smart contracts to facilitate transparent investments and
efficient transactions through distributed processing.
9. Zenon (ZNN):
Zenon is an open, worldwide decentralized network deployed on a multidimensional
sharding space that uses a highly scalable consensus protocol based on mathematically
verifiable cryptographic mechanisms.
10. Firo (FIRO):
Zcoin (XZC) is the first cryptocurrency to implement the Zerocoin protocol to ensure private
transactions.
Zcoin was rebranded to Firo on November 30, 2020.
