Invest in cryptocurrency and proof of stake?

If we just look at the regular earnings generated by the Masternode, we can easily see that it is quite similar to Masternode – Pos.

The reward for a Masternode is not as fixed as POS, it depends on the ability to operate the computer running the masternode. If that computer runs unstably, then the masternode will likely lose the opportunity to receive the reward and the reward will go to another masternode. The reward for POS is the creation of the block, while the reward for the masternode is not for the creation of the block but to provide the service infrastructure for value-added services. The creation of blocks in Dash is done by miners using the POW (Proof of Work) mechanism.

Running masternode is very secure, that is, it is not necessary to open the wallet for computers running on the network. What does that mean? With the POS mechanism, you need to leave the wallet open for the machine to run continuously. And your masternode uses a mechanism called hot wallet cold wallet.

A hot wallet is actually a virtual wallet with no money, this wallet works on a computer running masternode, this computer works 24 hours a day, 7 days a week with an internet connection. The cold wallet is a Dash wallet containing 1000 dash running on a normal computer, you only need to connect to the network when there is work, and it is only used to start the masternode or vote for projects. If you don’t need it, you can disconnect it from your computer or turn off your PC.

POS has a fixed interest rate according to the algorithm, and the reward for masternode depends on the factors, in addition to the factor such as stable performance as indicated above, that reward is more or less (fast or slow) depends on the amount of active masternode. Generally, the reward for masternodes is reduced by 7% per year, but the price of Dash also increases, so there is no problem.

But the amount of money for a reward is only 45% of the value of the block creation reward, but if there are more master nodes, within a certain period (for example, 1 month) the reward for each master node will be less. Masternodes usually queue for a reward, so the more masternodes there are, the bigger the queue and the longer it takes to receive the reward.


Masternode is not technically a normal node, it provides other important services for the Dash network, but these services are now PrivateSend, InstantSend and Decentralized Governance: decentralized administration. so that the community can vote on certain decisions, such as financing projects or seeking consensus on certain issues. The masternode later became a platform that allowed Dash to get more important services to be released in the next version of Evolution. We can imagine that the Dash masternode network is like servers or data centers of companies like Amazon, Google, Facebook. It will be the basis for the growth of third and fourth level networks. Later Dash.

Another important difference is that Dash’s masternode-based management mechanism is very special. People who invest in the masternode have the right to vote on important decisions in this ecosystem. As for the coins that use POS without a masternode, you can only make profit, not vote. However, the earnings of the currency are not guaranteed if the currency is devalued. Only when you vote to participate in important decisions to help reinvestment to guarantee the sustainable development of the currency, the profit obtained will be sustainable.

The final difference is that the POS is unconditional with the money it has, while with the masternode the number of deposits is fixed, and when the Dash price is as high as today, this deposit is also very expensive. But this is a unique mechanism that helps Dash keep prices low and less volatile like other currencies.

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