A Brief History of Masternodes
It is important to understand how the Dash ecosystem works before one can see the value of a masternode. Dash pioneered masternodes and brought them into the mainstream and still has the largest pool of node operators. Not everyone is able to contribute to the network as a miner, which is why masternodes were introduced.
Look at a masternode as a special server that is maintained at all times. Masternodes are trustless and decentralized, similar to how bitcoin nodes operate.
Every masternode on the network provides anonymization service, ensuring there is no centralized party to attack or take down. Moreover, masternodes ensure all transactions are validated in near real-time, making them quite efficient. Unlike bitcoin nodes, however, owners of masternodes will receive a financial compensation for providing these invaluable services.
As we speak, I am in the process of turning some underperforming currencies into BTC and transferring them to Cryptopia in order to purchase Chain Coin (CHC). This currency requires 1000 CHC to operate a masternode and is trading fairly cheaply– for now– making it a prime target to play around with a masternode operation.
I also believe that this currency has potential to increase in value, making it a prime target to hold and generate more CHC that will increase in value along with my initial holdings.
Here are the steps I plan to follow, document, and update you on so you can follow along. You can either do them yourself or simply observe:
- Acquire enough CHC to run multiple masternodes. Currently hold enough to operate two nodes and am aiming for 4 or 5 to start with.
- Figure out how to host my masternodes online at minimal cost to avoid needing hardware and maintenance. If this is not possible, I will use a Raspberry Pi 3 to do my hosting.
- Record my earnings and further document the experience.
- If CHC continues to grow and there is sufficient interest, try to operate a masternode sharing service.
If you are interested in following along with this process and operating nodes yourself, I strongly encourage you to buy Chain Coin now on Crytopia! It will likely increase in value in the short-term and you do not want to price yourself out.
Stay tuned for my next update later tonight once I have acquired sufficient CHC to open multiple nodes and start the online configuration process!