Masternodes Explanations/Guides/Setups/Tools for Dash Newcomers ….>
Dash is best known because it has been the first cryptocurrency focused on anonymity and privacy. What many people do not know is how this feature is implemented, or how it opens a lot of exciting possibilities.
In order to achieve anonymity Dash has successfully implemented Masternodes. They are an innovation by themselves and are necessary to achieve the privacy that Dash preaches.
What are Masternodes:
Simply put, a Masternode is a server connected with the network that performs certain tasks related with PrivateSend, which is what the anonymity feature is called, and gets paid for it. It is Proof of Service.
Anyone can run a Masternode. The objective is to have enough of them for decentralization so nobody controls an important fraction of Masternodes. On the other hand, to avoid bloating the network or having reckless operators, there is one condition that needs to be fulfilled: proof of ownership of 1000 Dash. 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.
Masternodes are get paid by the network for the services they provide for PrivateSend. 45% of the new block's reward goes to pay the Masternodes.
Masternodes are selected from the MN list (for MasterNode) by deterministic order (the one that got it's payment the most time ago and has been in the list enough time at the same time),
so in the long term all Masternodes will converge to a similar amount of rewards.
Having so many servers with the full block chain working for the coin can be extremely useful. Thanks to the reward system, there is no risk of not having enough master nodes and the developers can rely on them for any new decentralized feature they want to implement. This is huge. Tell any developer that he can count on a thousand distributed servers working 24x7 for him and he will tell you.
The more Masternodes the better and safer for the Dash Network.
In the moment we are nearly at 4000 MN’s (in 41 countries and counting).
Please support The Masternode Network ! Do not let your Dash just sit in the Wallet, put them to work !
There are many services and guides (see bellow) to help you achieve your own Masternode. The payment returns speak for themselves, please check the chart bellow.
Welcome to the Dash Masternode Network, the best investment/return in the Crypto World.
- In general your 1000 Dash (which are hold in your Wallet for the MN) will return 10% payment per year !
(Around 8.47 Dash per month /101.64 Dash per year)
- With 9.8 Masternodes you will get 1 new Masternode (1000 Dash per year)
Do the count yourself ….>
(Above based on February 2017)
- Instant Transactions
In the moment the only task for the Masternode Network in the moment is PrivateSend and Instant Transactions.
Evan Duffield (head developer) demonstrates this groundbreaking update here in this video on Dash Test Net (Nov 2014)
What do I need to host a Masternode?
- 1000 Dash: Arguably the hardest part. Dash can be obtained from exchanges such as Poloniex, Bittrex and LiveCoin. Shapeshift‘s service is also an excellent way.
- A server or a VPS installed with Linux: For the purposes of this guide we will be using Ubuntu 14.04 LTS. We recommend cheap VPSes such as from Vultr and DigitalOcean though any decent provider will do. Generally a low specced one will do. I use the 5 USD ones from Vultr and they work fine.
- A dedicated IP address: These usually come with the VPS/server.
- A little time <3 When I first got into masternodes, there were only a few guides around and did not cover all the scenarios. It took days for me to figure out the best ways to do everything. However, the process now takes a few minutes. With this guide, I hope it will make the process a lot easier.
If you can’t be bothered with setting up and maintaining your own and don’t mind paying a little extra, you can go with paid masternode hosters which will greatly simplify the process. A few good ones are: