Masternodes

Masternodes are specialized servers in a blockchain network that perform unique functions beyond basic transaction validation. Unlike regular nodes, they require operators to hold a significant amount of cryptocurrency as collateral. This collateral ensures the security and stability of the network. Masternodes facilitate advanced features such as instant transactions, privacy enhancements, and network governance. Operators of masternodes earn rewards, usually in the form of additional cryptocurrency, for maintaining the network and performing these extra tasks. They play a crucial role in decision-making processes, such as voting on network upgrades and proposals, contributing to the blockchain’s overall efficiency and security.