Are you wondering what it takes to become your own bank and how to feel empowered financially?
Then this guide is for you! We'll cover the keys to understanding what masternodes are and how to leverage them in order to keep the blockchain network efficiently running while receiving incentives (ROI) to participate.
Masternodes in short; are computers, devices and/or servers that process data and perform specific functions. They are also are a means of validating transaction to keep the blockchain network running without downtime in order to build a "trustless" and decentralized network.
There are two popular consensus algorithms in the blockchain space that are currently utilized: PoW (Proof-of-work) and PoS (Proof-of-stake). These algorithms are unique with their own set of rules, attributes and properties. Mining, which is commonly tied to PoW (popular because of Bitcoin) uses the power of hashing to compute and solve a mathematical "puzzle". Staking, also referred to as PoS is the action of "forging" transactions and validating that your masternode is online and secured. This process validates incoming data while staking a set number of coins/tokens as reserves to prove there are funds available throughout the network. The longer your masternode is online; the more reliable the node (fancy word for computer) becomes, much like a rating system. In return, you'll receive cryptocurrencies as a reward to keep incentivizing you for your participation!
Now let's go over the pros and cons of masternodes (mostly pros). Masternodes allow you to stake or "park" (like a savings account) your assets in a wallet, produces less computational power than PoW, is cheaper to maintain and easier to setup than a mining setup. A few drawbacks are that cryptocurrency prices can appreciate in value, making it difficult to accumulate, upgrading wallets or swapping coins can occur and the lack of features/support can hinder any network.
If you're ready to learn more and start earning passive income, then follow these best practices and steps for preparing your masternode adventure!
- Understanding of Windows operating systems or Linux. How to setup firewalls and configure user permissions. Understanding how to install apps, run command lines and familiar with TCP/IP.
- Have capital to purchase the cryptocurrencies for staking
- A VPS (Virtual Private Server) from a hosting service or a dedicated computer, laptop or device to host your masternode locally
To find an affordable and efficient cryptocurrency project that promotes PoS and masternodes, let's visit https://masternodes.online. The website has plenty of resources to help filter and search for the best coins with the best ROI, costs, amount to acquire and other relevant information to start planning.
Below are the current projects I have vetted and continue to support (ranked accordingly):
- XinFin Network - A unique blockchain that introduces a hybrid protocol. They have developed a dPoS consensus to allow for nodes to process, validate and govern the network in a private and public manner. The team has developed a simple 'One-click' installer to deploy the masternode.
- PIVX - Privacy is important to me and most people, so continuing to support this project is my mission. You can accumulate these coins and setup a masternode in a few minutes depending on your network speed and choice of setup (DIY or VPS).
- GoByte - A blend of PoW w/ a dash of PoS makes this project lucrative. The network uses the hybrid approach with both consensus to provide maximum validation over the network. The best entry barrier to setup a masternode because the cost is low and the learning curve is basic.
Your next task is to determine if costs can be cut (we want maximum revenue) by hosting your own masternode (as a local server) or to pay a monthly/yearly subscription to a hosting service provider. There are plenty of options out there all dedicated to pricing, ease of use with UI/UX experience as well as affiliate links to help marketing and promotions. Below are a few that I have used and I will provide the resources and links if you'd like to sign-up!
- Vultr.com - Fast, reliable and plenty of options to customize your server(s).
- Allnodes.com - Catered to masternodes specifically. They have partnered with various cryptocurrency projects and companies to make installations as easy as sending an email. One of the best pricing models, especially for entry level users.
- NodeForge.io - Similar to Allnodes.com, but has an enterprise feel, with great tools for reporting, constant R&D updates and competitive prices. Contact me for a referral and promo code.
- You can also use existing services that you are more familiar with, such as: Microsoft Azure, AWS, GoDaddy and HostGator if you prefer. Each host will have their own set of features and permissions, which could make the process a little more challenging if you're a novice to the space.
In conclusion, I've provided the tools for you to dip your toes into exploring the benefits and future possibilities of masternodes as well as how you can generate revenue from blockchain technology. Masternodes will be a vital part of society and empower the Web 3.0 to transform the way we perceive money (peer-to-peer or business-to-business) moving further into the digital era.
For a one-on-one approach, more in-depth educational lesson(s) and consultation, please email me at [email protected] or schedule an appointment.
Visit our website @ https://cryptosandtokens.com to learn more about our consulting services, future Meetups and to stay up-to-date on what's new with blockchain and cryptocurrencies.