In September, cryptocurrency in the world was born a new coin — ANON. It was a fork of Bitcoin and Zclassic and promises users an unprecedented level of privacy. But another surprise: at first, masternode ANON showed an 1800% ROI. It turns out that the deposited amount had doubled already for 20 days — and this is much nicer deposits in the Bank. Because of the General hype and growth in the number of the node named as the period lasted, but the pioneers still decently richer. How do masternode, and whether they rise far from cryptocurrency people?
Proof of Work (PoW) and Proof of Stake (PoS). What is the difference
For a start, remember the basics of cryptocurrency. Blockchain the blockchain, which stores data about transactions within the network. Information is added in the form of blocks, and does so in strict accordance with the mechanism of consensus.
Over the last term mean the method by which computers in a network agree to add new units. The most popular types of consensus — Proof of Work (PoW) and Proof of Stake (PoS).
PoW or proof of work involves solving math problems with a cryptographic protection. We are talking about GPU or ASIC mining. The scheme is simple: computers-the miners pick up the combination for the puzzle that will become the glue for the new block and the existing blockchain. As a reward for the decision are the lucky owner of a lucky card gets coins. The most popular example implementation of such a scheme is Bitcoin.
Advantages of Proof of Work is obvious. The network is protected by a huge amount of computing power. To gain control over bloccano cryptocurrencies need to capture at least 51 percent of all devices. It is very expensive and difficult.
The main disadvantage of PoW is a huge waste of resources. As they say officials and bankers, the owners of mining-farms spend a lot of electricity and do not produce anything.
There is still PoS — proof of share ownership. There are no mathematical problems to solve, and the role computers play the owners of large amounts of cryptocurrency. Whales block of coins, and thus guarantee the network security. The chances of getting the next block depend on the volume of cryptocurrency: the more coins, the more likely it is to increase the reserves.
Here too there is a minus. Proof of Stake is called a “game rich”, which is the usual cryptoendoliths not even close. To participate in the race they simply do not have enough money.
Masternode — what is it
An alternative to mining on the cards — masternode. This is a special node or nodes in the network of cryptocurrencies that provide high speed of work and decentralization. One of the main conditions of work masternode — blocking of a certain amount of coins.
One of the tasks of the nodes is the signature blocks. As a reward for work masternode receive cryptocurrency. Not bitcoin and ether, specifically the coins of the network in which they operate.
Masternode simple language
It is important to understand that networks are decentralized cryptocurrency, that is, nobody supervises them. Protection should be durable, because if something happens to recover the lost money will not work. How to prevent and to perform attacks on the network need to abide by the consensus, that is, to have the power of the majority.
Guarantee the security of the networks of some of the coins are exactly masternode. Fraud protection works here in two directions. First, the impact on the blockchain will require large sums, after the launch of masternode worth the money. Second, to conduct an instant effective attack will not work, because the node must pass a certain number of hours.
Imagine a sea port at night. Warehouse on site with all the contents of the blockchain. Ships with containers arriving every few minutes, perform the new blocks.
Because the dark street, between the port and the ships should be trust. The captains last want to be sure that profits in the right port, not the one where they Rob. In turn, the base employees want to know that the inside container has the information about the transaction, not a fraudulent program.
The bridge between the two sides are masternode. In this case they play the role of lighthouses at the entrance to the port. Beacons not two and three and thousands. They all Shine the necessary light and thus confirm the correctness of the direction of the ship. Beacons as if to soothe the captain, and say that all is normal — the port is ready to receive cargo.
In other words, masternode guarantee the genuineness of the network. They very quickly confirmed blocks from different countries of the world. Masternode give a vote in favor of the assertion that the situation is normal, the blockchain is correct, and hackers here even does not smell. Once recruited the required number of votes the block gets to the chain.
The result is that masternode, roughly speaking, paid for the presence in the network. In fact, she is responsible for its authenticity, security of money of the owners of the cryptocurrency and proper functioning of the blockchain.
Is it possible to hack the network and make the lost ship believe that he came to the correct port? Yes. To do this, a hacker needs to capture the bulk of mastered, which can reach 80 percent, and time to light the lights. Then the blocks will form a new chain wrong, and that’s dangerous.
What we have in the end? The more masternode in the network, so it is safer. The owners of the nodes is hardly a nice thing to hear, because the reward for mastered fixed. It turns out that with the increase of profit will fall. But to hack the blockchain will be much harder.
List mastered
Today there are more than 2000 cryptocurrency. Support masternode of them are relatively few. To discover the full list of coins, there are three resources:
— masternodes.online;
— mnrank.com,
— masternodes.pro.
Next to each cryptocurrency are seeing the rate of return on investment, daily income, market capitalization of the coin, the cost of the nodes and their number. The amount of coins to start masternode on different networks is different. For example, in ANON enough for 500 coins, and SmartCash — 10 thousand.
Hence we obtain, and different prices run. One of masternode Smart will cost around $ 240, while for the Dash you need 186 thousand dollars. By the way, Dash is the only coin with masternode, which holds the top of the world rankings cryptocurrency. At the time of writing, the Dash was in 12th place.
How to choose masternode
Before investing money in masternode need to pay attention to some important features.
— Price stability. Be sure to analyze the behavior of the value of coins over the past few months. It is desirable that it was stable and varied in accordance with the behavior of Bitcoin. In addition, the changes should be smooth. If the rate jumps dramatically up and down every few days, another dump may worsen the condition of the portfolio and discourage contact masternode.
— The developers. Examine the team members and their past achievements. It is desirable that the shoulders of the developers already had some worthwhile product. At least they should not be involved in all sorts of Scam schemes — this will partially eliminate the possibility of price manipulation of coins or banal disappearance of the project.
— ROI. The rate of return on investment is always changing — this we already understood. It is desirable that the amount of interest wasn’t very young. But thousands of be carried out is not worth it. Most likely, this tale will end very quickly.
— Liquidity. One percent little — you also need to ensure about the possibility to sell the coin without any difficulties. Cryptocurrency masternode should trade at least on exchanges such as Cryptopia, or Graviex Cryptobridge. By the way, for listing on major exchanges like the Binance pay hundreds of thousands of dollars. If cryptocurrencies will appear on these “elephants” in the prospects of the project there is no doubt.
Wallets. The main tool in dealing with cryptocurrencies. Logical and user-friendly interface in such projects is easier not to wait, but virus programs to be sure not be. Learn what apps recommend developers to use. If possible, test them on a virtual machine.
How to make money on masternode
Again go over the basics. The signature of one block takes approximately the same amount of time. For example, Bitcoin and the same ANON that’s 10 minutes. If miners get too many, the network will increase the complexity of the tasks to enable the blocks in the blockchain. If a little easier.
Thus to reward the owners of graphics cards, masternode and other members of the network takes about the same amount of coins. We look at an example.
Unit in the network is signed ANON every 10 minutes and gives 50 coins. 65 per cent of the amount goes to miners, the remaining 35 masternode. The day has 1440 minutes, so that the day 144 blocks brings 7200 coins. Of these, 2520 coins are masternode.
After the start of the network masternet was little. When they were 10 per day each masternode got 252 coins and thus was off for 2 days. When they became 100, the remuneration fell ten times, and the payback period has now stretched to 20 days. It turns out that the more masternode in the network, the less their reward. By the way, the network sends money to those masternode that for the longest time did not participate in the signature blocks. A so-called turn to uptime.
Return on investment or ROI masternode is calculated as the quotient of the remuneration masternode for node and the cost of running masternode multiplied by 100.
If the ROI is 100 percent, a year the money invested will bring the same amount. If 200 percent — double the amount. The figure could reach tens of thousands of percent. This usually happens with the so-called shidonni, a little-known unreliable projects.
Important point. In theory, the number of masternode should always grow, and ROI is falling. In fact it is not. Sooner or later, the decrease in ROI will make some impatient owners to exit the game and close masternode. In this case, the remuneration of holders of mastered will increase. The self-regulation principle is the same as in mining.
Record the ROI on the day of this writing belonged to a certain PlanetPay (PLT) and was 9447 percent. In total, this network had three masternode, and to start each of them had about $ 1,800. Someone probably well earned. If unable to sell, of course.
Calculator masternode
To learn profit with masternode using the above resources. For example, that indicators of Deviant (DEV).
At the current rate of coins and the number of masternode in the network each of them brings 7,70 USD. It is important to understand that we are talking about an entire masternode — but you can still buy the part. For example, 50 percent of the site DEV will bring 3.35 dollar a day.
How to deal with more complex interest? We recommend you to go to the list of coins on 2Masternodes.com and use the advanced calculator. Select the desired masternode. For example, GoByte (GBX).
ROI coins — 70.22 percent. In the day of masternode will bring 1.92 1.68 coins or dollar. Per month would amount to 57 coins and $ 50 respectively.
Suppose that we sent to masternode 350 coins, and 650 invested by someone else. Move the slider to the desired record and see the other figures.
GBX 350 at today’s exchange rate — $ 305. During the year they will bring a GBX 214, or 245 dollars. The amount of cryptocurrency will be constant, but the dollar equivalent depends on the course. If the rate increase, the amount will increase in proportion. And Vice versa.
The same applies to other coins. Share in the calculator, enter any — depending on the capabilities of your wallet.
How to buy masternode and share it
Masternode can be run independently, but in this case it is necessary around the clock to monitor its performance, server and other details. If a node goes into offline, after recovery it will be in the end of the queue for remuneration.
From cares exempt service 2Masternodes, which allows you to buy masternode and share in them. The system is automated: independently starts a new node on a secure server, monitors the work and pay remuneration. Service fee — 10 percent. If the network will give your masternode 11 coins, the bill will come 10.
To buy send the desired amount to the wallet service. It is important that the coin is gone from the wallet instead of the exchange. In this case, transfers will not have problems, and access to earnings will be opened.
What to do after buying masternode
Relax. Ideally, to forget about investing at least a couple of days and stop to check courses every five minutes. Service automatic the network operates in strict accordance with the code. Even if masternode will go offline sooner or later she will get the reward.
The nicest thing is that people can’t affect the blockchain. So you can not write to the chat service or developers — as soon as the network will send the reward, it will immediately go to your wallet.
Where to chat with like-minded people
To communicate on the topic of earnings on the cryptocurrency will succeed in a special Telegram chat. Here asking questions about starting masternode, sending coins and the frequency of payments. The answers to most of them is already in the FAQ.
Masternode simple language. How to choose masternode and how much it can earn
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