Masternodes are a trending topic in the world of cryptocurrencies. There are several coins that have adopted a proof-of-stake system with so called masternodes. This was pioneered by the Dash cryptocurrency, several others have followed suide.
But what is a masternode, exactly?
What is a masternode?
Masternodes are nodes in the currencies network that fulfill a specific function beyond simply relaying transactions. In Dash’s case, they enable the InstantSend, PrivateSend, and the Dash Treasury System. Other crypto-currencies such as Crown plan to use master nodes to host decentralised apps amongst other things. This contrasts the system of i.e. Bitcoin, where a Node is simply a server relaying transactions.
Since Masternodes fulfill special functions for a cryptocurrencies network but do cost money and effort to operate, they are incentivized by gaining a share of the block rewards in their respective cryptocurrency. Hosting a Dash masternode generates Dash, a MUE masternode generates MUE. The yield varies primarily according to the masternode count and each coin might have different payout periods. PIVX pays out daily; Crown pays out several times a day. This makes masternodes a form to earn "passive income" on cryptocurrencies without having to run expensive mining equipment.
Anyone can run a Masternode. The objective is to have enough of them for decentralization so nobody controls an important fraction of Masternodes. However, there is one condition that usually has to be fulfilled: You have to stake a certain amount of coins in your masternode. Staking in this context means you lock up the coins for a fixed amount of time (think fixed-term deposit). The coins don't need to be in the Masternode, but they need to be kept in a certain way. If the owner moves or spends those coins, the Masternode stops working. This "proof of ownership" system serves to incentivize masternode operators and to prevent certain individuals to control a large share of the network by themselves.
What are the prerequesites?
To create a masternode, a user needs to lock in a specific amount of coin. (See below for more details). In the case of DASH, the creation of a master node requires to lock in 1,000 DASH in a local wallet. Users can then either setup a server to host the masternode or ask a service provider to do so on their behalf.
Which currencies have a masternode system?
Please see the below table for a quick overview of the available coins that offer masternode staking. I included the prices as of July 15th from Coinmarketcap. However, due to the very volatile price swings, you should re-check these prices by getting the current price of one unit of the currency of your choice from coinmarketcap.com, then multiplying by the number of units necessary to stake in a masternode.
| Currency | Symbol | Deposit | Dollar cost of Masternode at July 15th, 2017 (est.) |
|---|---|---|---|
| AmsterdamCoin | AMS | 100,000 | ~400 $ |
| Block | BLOCK | 5,000 | ~22.000 $ |
| Bitsend | BSD | 20,000 | ~6.600 $ |
| Bata | BTA | 10,000 | ~6.000 $ |
| BitRadio | BRO | 2,500 | ~340 $ |
| Crown | CRW | 20,000 | ~ 20.000$ |
| ChainCoin | CHC | 1,000 | ~ 4.000 $ |
| Crave | CRAVE | 500 | ~ 1.000 $ |
| Dash | DASH | 1,000 | ~ 157.000 $ |
| Diamond | DMD | 10,000 | ~ 27000 $ |
| ExclusiveCoin | EXCL | 5,000 | ~5000 $ |
| FlaxScript | FLAX | 23,000 | ~900 $ |
| iCash | ICASH | 100,000 | ~15.000 $ |
| ION | ION | 30,000 | ~21.000$ |
| InsaneCoin | INSN | 50,000 | ~ 11.000 $ |
| MonetaryUnit | MUE | 500,000 | ~ 49.000 $ |
| Neutron | NTRN | 25,000 | ~ 3.525 $ |
| Nem | XEM | 3,000,000 | ~ 342.600 $ |
| Pivx | PIVX | 10,000 | ~ 16.000 $ |
| Renos | RNS | 30,000 | ~4. 000 $ |
| Syndicate | SYNX | 5,000 | ~3.300 $ |
| TransferCoin | TX | 10,000 | ~ 6.400$ |
| Vcash | XVC | 10,000 | ~ 2.300 $ |
| XtraBytes | XBY | 500,000 | ~ 6600 $ |
These are the fundamentals of masternodes, the currencies that offer a masternode system as of now and the costs to set one up. If there is interest i might follow up with an article that illustrates the technical details of operating a masternode server. Please let me know in the comments. Have fun investing!
A very informative article. Keep them coming! Upvoted, Followed and Resteemed!
Hey! Not bad for a first blog! Its good am sure you will do well if you take the time and effort to make good content! Voted for me!
Thanks for the post. This is definitely a result of hard work. I've been looking for a comprehensive list like this and wasn't able to find any until now. There's a new coin that is yet to be added to the list. It's DAS and it's 1,000 coins for masternode. Can someone find out how many coin for 8bit masternode?
BiblePay (BBP) is a new masternode cryptocurrency: http://biblepay.org/
10% of mined coins go to Charity, the project is already funding 175+ Orphans monthly!
BiblePay is a fork of DASH (governance model)
with a goal of ASIC Resistance (CPU Only mining) like Vertcoin
Masternodes (Sanctuaries) are going live this December,
by owning one you become a part owner and can vote on the direction of the project!
Launch Thread: https://bitcointalk.org/index.php?topic=2388064.0
Reddit: https://www.reddit.com/r/BiblePay/
Love one another,
be a good Samaritan,
help those in distress (orphans & widows),
and spread the gospel
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STOPHello please kindly like my post too thanks
https://steemit.com/advice/@romantic4/is-a-vision-the-same-as-a-goal
For some reason it's not letting me upvote but thank you for your clarification
damn the CHC masternode just keeps going up. god bless that coin :)
You forgot to mention 8bit, it's the cheapest Masternodes! I bought four of them yesterday, and I'm holding :D
Nice list bro.
You missed Coinonat (CXT) from the list.
Masternode = 5,000 coins = $500
HELP HELP HELP!!!!
I’ve got 10 master nodes set up and running. However after changing the ports, 2 of my nodes have locked me out. One I tried to change the password and there must have been a mishap because no passwords are working to unlock it and the other node won’t load up with the old port or the new port. I can’t see how Ill be able to unlock access to either node. I guess my question is, can I shut down the server and just get those 1000 coins returned and re-establish the masternode? What happens to those coins if the server goes down?
What currency is it?
This is a very good read. Thank you very much for that. I will resteem this to my followers. Please write another article about the technical details of operating master nodes. Thanks
This is great! Thank you -- we will mention you in our video :)
Thanks a lot for sharing.I have been researching some of these options to see if they are worth the investment.I see the Dash Master-node cost doubled since then.
you can add Vsync to that list
This is really cool, will definitely look more into this.
Masternodes are really interesting, have found an interest in POLIS, ARTAX and TUNE cryptocurrencies which all run on masternodes. Keep these articles coming!
In the near future, the Titanium project will also provide their investors with the opportunity to stake their BAR-tokens. The Titanium project is something that has really drawn my attention, as should it draw every cryptocurrency-investor's attention: With TBIS’ proprietary Company as a Service™ (CaaS) and Infrastructure as a Service (IaaS), every device, from enterprise level on down, can be virtualized; routers, firewalls, and specialized equipment such as cryptocurrency miners, can exist in an entirely cloud-based environment based on the decentralized Ethereum blockchain.
Buy now before this coin moons like we have not seen a coin moon before.
Good info, great explanation. well worth the up vote. Thanks for posting
You should consider adding STRAKS (STAK) to this list. It is faster and more up to date than DASH. It is also ahead of other currencies such as Vertcoin and Bitcoin Cash. A highly undervalued currency atm. due to limited exposure still.
https://coinmarketcap.com/currencies/straks/
Yes, I am definitely interested in a follow up article for operating a masternode server.
Sometimes it can be expensive to get your own masternode. Checkout out Shared Masternode Service at https://www.goldnode.io/ - You can take "seats" that resembles a share of a masternode easily there.
If you have suggestions for a coin to start a Shared Masternode with join in the chats at Telegram: https://t.me/joinchat/GJR4w1Fg4tYlNXAxQ691pA or Discord: https://discord.gg/dGZE5wB
For people who are interested in masternode monitoring we started https://masternodeonline.com
We currently monitor 115 currencies, we add new ones every few days and we implement new features all the time.
The main features of our service:
Do not hesitate to use our service :-)