A Problem statement
Masternodes is a compelling way to attract more interest. It rewards those who take part with a certain amount of coins. This can be operated on a separate blockchain keeping intact BtcZ original chain. This will help preserve the coin and its ethos. Masternodes is decentralised as those participating will be on a global scale.
Mission Statement or Vision
Objectives to be achieved.
Some of the special functions that these nodes perform are:
• Increasing privacy of transactions
• Doing instant transactions
• Participating in governance and voting
• Enable budgeting and treasury system in cryptos
This provides an alternative reward-based method to be involved with BitcoinZ other than mining. This opens a wider scope for your target audience(The World).
Just like full nodes in a cryptocurrency, masternodes can be run by anyone. However, there is an entry barrier in place to ensure that the system doesn’t get malicious. The entry barrier is what one needs to commit or collateralize certain units of that particular cryptocurrency to run a masternode.
This is done to ensure that a masternode owner doesn’t cheat or corrupt the system and the best of doing so is by putting this entry barrier where the masternode operator has something at stake in the whole game.
So naturally, it becomes very less likely that a masternode operator will cheat because he has a stake in running the whole system and even if he chooses to do so he will be punished in the form of devaluation of their own HODLings.
Now that you have understood the concept of masternode, let us see what all things are required to set it up:
• One needs a minimum amount of coins. E.g (you need 100 000 BTCZ units for a MN) So this minimum number of collateral required which enables you run a MN.
• One needs a VPS or server to host that wallet for 24 x 7
• One needs a dedicated IP address for that
• One needs some storage space to save the blockchain
These are the pretty much same requirements for any masternode cryptocurrency.
Cold or local wallet In a cold wallet, the administrator sets up the wallet for coin storage on a computer on a private, protected Local Area Network (LAN) with a non-routable IP address. This is usually the administrator’s desktop or home computer. The administrator will transfer the required coins to the address to be used for the masternode, and use the local wallet to start the remote masternode coin service on the host exposed to the Internet with a routable IP address and port. Once the service is started, the administrator can close the cold (local) wallet. The server on the Internet will handle all the necessary communications between different systems forming the coin’s full network.
Guidance: Guidance and tutorials to be provided to allow the community to participate.
Masternodes are very useful for crypto investors because of running a masternode you are incentivized. Consider it just like earning a monthly or weekly interest on your crypto holdings.
Different cryptocurrencies have different incentive models through which an MN operator can earn a decently monthly or weekly income. I call it smart passive income.
Benefits of achieving objective result in exponential growth of BitcoinZ
Performance and progress measures
• Price Increase
• Buy support
Other EG ONLY
100 000 BTCZ Collateral
Offline Wallet to Hold Coins (Windows Wallet Only)
VPS to run specialist BTCZ Code
A Separate Chain
New Coins distributed with a decreased number of total supply (To Be Discussed)
A ratio of 1:100 Coins to holders (100 BTCZ = 1 BTCZ XX)
Offline Wallet to hold coins (Windows Wallet Only)
VPS to run specialist BTCZ Code
Both the above are just a eg scenario and not a official proposition as I believe this part is best understood by the developers.
Costing & Funding
- Donation from community to enable developers to work on the code as this will take up resource
What is a Masternode:
Masternode is simply a cryptocurrency full node or computer wallet that keeps the full copy of the blockchain in real-time, just like your have Bitcoin full nodes and is always up & running.
But masternodes are considerably different in their functionality than normal nodes.
They are different because they perform several other functions apart from just keeping the full blockchain and relaying blocks/transactions as a full node does in Bitcoin/Litcoin.
Some of the special functions that these nodes perform are highlighted above:
These masternodes are not standalone but they are always communicating with other such nodes to make a decentralized network and are often referred in short form as MN.
Note: Mostly the masternodes perform the tasks that I have listed above but it can slightly vary from cryptocurrency to cryptocurrency depending upon how masternodes have been implemented. But more or less they perform these functions in a cryptocurrency.
Not Necessarily Proof-of-Stake (PoS):
Many cryptocurrency users who don’t know better assume that masternodes are an extension of Proof-of-Stake (PoS) coins (i.e. cryptos that aren’t mined, but are staked), but that’s not true. There are Proof-of-Work (PoW) projects that make use of masternodes, so these kinds of nodes aren’t exclusive to PoS or PoW.
With that being said, running a masternode is PoS-like, in the sense that you generate passive income through a masternode just by holding your coins, similar to how stakers earn in PoS systems.
So it’s something to consider: you can make passive income with a masternode just like you could through a PoS cryptocurrency, but you don’t need PoS cryptos specifically to run masternodes.