Masternodes are the evolution of nodes in a blockchain network. A masternode is simply a node that has certain additional responsibilities. Thus, to know about Masternodes, we must know about nodes, light nodes, and full nodes. Nodes validate transactions in a blockchain. Thus, all nodes in a network store a copy of it. As new transactions are bundled together in a block and added to the blockchain, nodes verify these transactions, validate the block, and update their copy of the blockchain. Thus, nodes are essentially validators who receive rewards for their contributions.
A typical blockchain network grows in size with time, as more and more blocks are added to it. A good example of this is Bitcoin. Bitcoin grew larger with adoption. Data from Statista shows that the Bitcoin blockchain was around 10 MB in April 2010. Now, it is more than 344 GB. As hardware requirements change, it becomes increasingly difficult to set up a Bitcoin node. Thus, light nodes came into play.
Light nodes: Light nodes are nodes that only download the recent history of transactions to validate blocks. They do not hold the entire copy of the blockchain. Thus, light nodes can validate blocks faster as they only need minimum computational resources.
Full nodes: On the other hand, full nodes hold the entire copy of the blockchain and are generally more secure. Even if all but one full node were to be corrupted, the blockchain can still be restored. Since they validate all the blocks, they require greater computational power.
What are masternodes?
Masternodes are full nodes that store the entire copy of the blockchain. The more the masternodes in the network, the more secure the network is. But how does a masternode differ from a full node then?
Masternodes hugely differ from full nodes in that they provide staking opportunities to the validators. Validators can stake their coins on masternodes and earn passive income. In addition to this, certain Blockchain networks, depending on their architecture, provide voting, governance and regulatory rights to Masternodes.
About Beldex Masternodes
Masternodes can be part of networks with both Proof of Work (POW) and Proof of Stake (POS) consensus. The Beldex Masternode currently follows the POW + MN architecture. As the Beldex network transitions to a full POS network, the masternodes will be updated to a POS + MN architecture.
Beldex masternodes are essentially validators that earn rewards for their services. In their current state, they can validate blocks, but cannot add blocks to the blockchain until the scheduled POS hardfork in Q4, 2021.
How to Earn from Beldex Masternodes
For each newly created block, 2 BDX are minted as rewards. Rewards are shared based on the number of masternodes in the network. If you’re a masternode enthusiast looking to earn passive income, then check out how to set up a Beldex Masternode below.
How to set up a Beldex Masternode?
The best crypto masternodes are ones that provide you with easy access to staking. You can easily stake BDX either by setting up a Beldex Masternode or on a shared masternode pool.
Requirements to set up masternode:
- Hold the required amount of BDX as collateral. The minimum amount required to set up a masternode is 10,000 BDX.
- Have the required hardware to set up the masternode – you can find the complete software and hardware requirements here.
- Then, follow the steps listed here
- Download the entire copy of the blockchain
- Run the Beldex Daemon
- Obtain the MN key
- Create a Beldex wallet
- and register your Masternode.
Requirements to stake on a masternode pool:
- Open an account with the staking platform.
- Choose BDX staking pool and stake the desired amount of BDX.
You can currently stake on remote masternodes on the Evonodes shared masternode pool here. Beldex will provide more staking platforms in the near future to stake BDX.
BDX is a masternode crypto and the Beldex chain is supported by Masternodes. Thus, the network’s decentralization, security, and scalability depend on them. Once full POS is live, Masternodes will receive 100% of the block rewards and have the highest authority on the Beldex network.
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