Masternode

Masternodes are computers that process blockchain transactions and are rewarded with coins from the blocks being created for their efforts. Masternodes differ from full nodes in that they perform additional functions besides transaction verification and storing the full blockchain. Some special functions they can do are:

• Increase the privacy of transations
• Participate in the voting and governance of the coin
• Perform instant transactions

Rewards

Those who host masternodes are rewarded for their actions. For example with a Dash masternode, you can earn up to $50/day.

Hosting Requirements

There are several requirements to host a masternode. Those are:

• Collateral

There is a barrier to entry, which helps to deter wrong doers, so you will have to put forth collateral. For example, to host a Dash masternode one will need 1000 DASH units for collateral.

• A VPS or a server with linux

A VPS or a server with a dedicated IP address is required in order to host your wallet for 24/7.

• Storage

You want to make sure you will have enough storage in your VPS to store the entire blockchain.

These requirements are pretty much the same for any masternode coin.

How to choose a masternode coin

Before choosing a coin, there are a few things to consider:

• The buy in fee
• The return on investment (ROI)
• Integrity of the coin
• Probability of