4 Masternode projects that you should know

It's an incredibly interesting time to get involved in the cryptocurrency space. Prices have collapsedand many of the projects that were created during the last bull market are facing severe adversity for the first time.

Furthermore, the Bitcoin Cash hashish war he showed us all the potential vulnerability of simple job test blockchains. With decreasing network values ​​and fewer people who can profit, hash rates decrease in space … Suddenly, 51% of attacks are not so costly to challenge their opponents.

In fact, the constant threat of a malicious attack from the field of Bitcoin Cash SV has pushed the ABC field to implement rolling 10 checkpoints to prevent malicious reorgs from attacks of 51%.

Of course, the still nascent blockchain industry is full of experimentation and the proof of work is far from the only model of consensus that is put to the test.

In this article, we will discuss some projects that aim to reach a decentralized consensus using a different method: the masternodes.

Masternodes are complete nodes that work 24 hours a day, 7 days a week, to validate transactions and are managed by members of the community of cryptocurrency data. To perform a masternode, you must also be able to bet a considerable sum of the coin or token. This large share is necessary to ensure that the masternode operators have sufficient incentives not to attack the network and to devalue their holdings.

In return for their work to protect the network, masternode operators earn rewards similarly to miners in work trial projects.

For all those who are passionate about contributing to these cryptocurrency projects e earn passive income from masternodes, here are 4 masternode projects to keep in mind.

4 Masternode projects that you should know

Dash ($ DASH)

Like the original masternode project and one in circulation since 2014, dash it's an obvious inclusion in this article.

Dash is closely related to Bitcoin and both are proof-of-work coins.

However, Dash differs with a 2-level data mining system that includes Dash Masternodes, which are complete nodes that provide some extra features to Dash users, including:

• PrivateSend for transactions with greater anonymity
• Immediate sending for instant transactions
• Decentralized governance and budget management through a masternode voting system

As a reward for the execution of a masternode, operators earn 45% of the total block awards. Another 45% goes to the miners, while the remaining 10% goes to the budget system.

To run a Masternode Dash, users must wager at least 1,000 Dash and have a dedicated IP address that can work 24 hours a day. At the time of writing, 1,000 Dash has a value of about $ 87,000 – a fairly significant figure.

Having such high demands on masternode operators raises the common argument that masternode projects are not really decentralized, since not everyone can participate in mining.

In reality, this is not so different from the debate on the size of the blocks that led to the separation of Bitcoin and Bitcoin Cash. The argument to keep the block size limit of 1 MB for BTC is based on the fact that larger blocks require better equipment and faster Internet connections from miners to participate in the mining industry.

On the other side of the subject masternode, people point out that the power of extraction is typically broader and evenly distributed for masternode projects than pure proof-of-work projects, which tend to have only a few pools mining in control of the majority of power hash.

It is certainly an interesting debate, and both arguments have merit. After all, we'll just have to wait and see how the masternode projects behave in contrast to the purely demonstrative coins of the work over the years and decades to come.

If you do not have ~ $ 87,000 but you're still interested in running a Masternode Dash, you do not have to wait until you make it rich.

This is because Dash Masternodes has been tokenised by a security token platform called Swarm (more on them below), which allows the fractional ownership of masternodes that splits blocking rewards between each part owner based on their proportion of the pile. .

If this interests you, you can learn more about it Swarm investment page.

Swarm ($ SWM)

Swarm is a project focused on democratize investments and making high-yield opportunities available through tokenized securities to the masses.

Like many projects, Swarm initially managed the Swarm network nodes internally and validated transactions, while platform awareness spread. After achieving a large part of the community's growth, the time has finally come to decentralize the Swarm network with the launch of Swarm Masternodes.

To get a masternode, users must register and wager at least 50,000 SWMs, which are currently worth around $ 10,000. Obviously, this is a big chunk of change that probably average investors can not afford.

Fortunately, Swarm's entire business is to make all these types of exclusive investment opportunities available to them and the Swarm Masternodes themselves are no exception.

According to FAQ masternode:

In the near future, you will be able to participate in the split ownership of a Swarm Masternode through a Swarm investment opportunity called Swarm Masternode Token (SMT).

In other words, soon you will not need to have all 50,000 SWMs to execute a masternode and earn rewards for the nodes, since you'll be able to merge with other community members to collectively run the nodes.

Despite the poor performance of the encrypted market lately, Swarm's masternode program has been taking over recently. A huge payment to registered masternodes has helped to boost over 30 new entries in the last two weeks, bringing the total number of masternodes into the 126 network during writing.

Swarm Masternodes earns 2 types of prizes: block premiums and premiums of the Market Development Fund (MDF).

The former are rewards that are paid for each block and evenly distributed among all suitable masternodes.

The latter come from a pool of capital managed by Masternodes through Swarm's liquid democracy, which is used to finance investment opportunities on the Swarm platform. 30% of annual MDF investment returns are for participating masternodes, while 70% is used to buy SWMs from the market, which is then added to the MDF pool in the following year.

Ultimately, the masternodes allow Swarm to be secure and decentralized. They manage Swarm's market access protocol (MAP), which provides a framework for offering legally compliant and easily tradable security tokens.

With a current annual ROI of almost 40%, Swarm Masternode is one of the best passive assets that generate income.

VeChain ($ VET)

Right warning, this will get complicated!

VeChain is one of the protagonists of the supply chain management space, widely considered as a promising area for the blockchain to be interrupted in the coming years. With tons of high profile partnership and a growing presence in the Chinese economy and abroad, VeChain seems to have a lot to offer.

The VeChain Masternode system is where things get complicated.

You see, there are actually many levels of nodes that the IFP stakers can operate, with the level determined by the amount bet. In exchange for running nodes, operators receive Thor, which is essentially the VeChain equivalent of Gas for Ethereum.

There are 2 general categories for nodes:

• Authority nodes: These are the top-level masternodes that are used to validate the blockchain.
• Economic nodes: These are all the lower-level nodes that are not used to validate the blockchain and require no hardware, but they still reward users for betting their coins and providing stability to the VeChain ecosystem.

Authority (a.k.a Thurdheim) The masternodes are evaluated and selected by the VeChain foundation and must go through a complete KYC application. (All the little blockers and masternode opponents they are reading are probably shaking their heads.)

In addition, the Authority Nodes must meet the dedicated hardware requirements for blockchain validation and must participate in at least 250 million IFPs, worth approximately $ 1 million from writing.

In return for meeting these high requirements, the Authority Node operators receive the maximum Thor (30% of all Thor consumed by blockchain transactions) and get the best voting rights.

The economic nodes, meanwhile, can be divided into 7 types. The minimum amount of VET bet required to run one of these nodes is 600,000, while the maximum amount needed is 15.6 million – worth about $ 3,000 and $ 78,000 respectively.

If you are interested in examining the details of the economic nodes, we advise you to check out VeChain Insider.

Techrock (formerly known as Walimai / 蛙 力 买) ($ WABI)

On December 4th, Walimai renamed to Techrock, but the fundamentals of the project remain unchanged.

Techrock is extremely similar to VeChain. Both are based in Chinese supply chain management projectsand both have implemented masternodes to protect their blockchains.

Techrock is actually only half of the complete supply chain cryptocurrency solution, however. This is A history of 2 blockchains: WaBi (now Tael) and Walimai (now Techrock).

Tael is the project's consumption incentive token, used to reward users for purchases, scans and other actions within the Techrock ecosystem. Techrock, meanwhile, is the place where retail transactions are recorded and monitoring and management of the supply chain occurs.

The masternodes are used as transaction auditors for the public Techrock blockchain, on which it is based Hyperledger Software.

To be a Techrock masternode, users must meet the following criteria:

• Keep a minimum of 5,000 WABI tokens (worth just under $ 700 at the time of writing) in a private portfolio
• Have a dedicated computer on Linux Ubuntu 16.04 and later with support for Docker. The minimum specifications are: 2 cores, 4 GB of RAM, HDD 40 GB.
• Register the private wallet with 5,000+ WABI through the WaBi Verification Bot.
• Fill out a Google information form.

The 30 portfolios with the largest WABI stakes are then selected to run Techrock masternodes, while others are placed in a "backup queue" to replace all masternodes that stop meeting the requirements.

The reward for the execution of a masternode depends on the amount retained and the type of node. There are 2 levels: the normal Masternodes and TrustNodes.

The payment structure can be seen below.

Techrock / Tael is already a working product used in the liquor industries, baby food and cosmetics, offering peace of mind to millions of Chinese consumers. Given the prevalence of counterfeit goods in China, there is a lot of potential for growth here.

Conclusion

Masternodes have their advantages and disadvantages like anything else. Although the operation of a masternode is not without permissions like the extraction of Bitcoins, having a network of independent masternodes can provide reliable and decentralized protection for any project that chooses to follow this path.

Dash, Swarm, VeChain and Techrock use all masternodes for this purpose despite having very different participation requirements, particularly in terms of the USD value of the coins bet.

If you can afford the initial cost of becoming a masternode, it can become a valuable asset that pays a constant passive income.

And if the requirements are too high, keep the Swarm eye for more opportunities to purchase partial ownership in a tokenized masternode.