Everything you need to know about masternodes in 2021

You’ve heard the term “masternode” online, but you’ve no idea what a masternode is? This is the right place to find out!

Educate yourself through free articles, online video’s, and useful links about masternodes. Learn about the benefits of masternode coins, masternode hosting, masternode rewards, and how to invest in masternodes.Open the masternode legend & jump to the right topic!

Masternode legend

What is a Masternode?

Quick answer: A masternode is a (strong) computer on a cryptocurrency network (blockchain) that enables additional features for the blockchain/cryptocurrency and its users.

By locking a set amount of coins as collateral, investors can host a copy of the blockchain on a strong server and receive masternode rewards in return.

Masternode definition

Masternodes are strong servers that host a copy of a blockchain to verify transactions, enable additional blockchain services such as instant send and private transactions. For providing these services, masternodes receive blockrewards in return.

A common misconception about masternodes is that they mine cryptocurrency, while the blockrewards are set in the algorithm similar to mining, the rewards are automatically distributed to the masternodes from either miners or stakers depending on the algorithm.