CIF To Support Masternodes, Private Send and Instant Send in Major Blockchain Upgrade
We here at the CIF are proud to announce that our blockchain will be undergoing a significant upgrade in the next few days. One of the most important changes being made is the inclusion of masternodes to our network. Read on to learn more about this exciting development and how you can join and earn a regular return running your own masternode!
What is a masternode?
Before we get into how these changes will affect CIF, let’s go over what a masternode is. A masternode is a specialized server that helps process transactions quickly and anonymously. Masternodes are rewarded with a portion of the block reward — just like a miner, and also receive transaction fees that are paid to the network. Masternodes require a deposit to be held for as long as the node is running. Funds can be removed at any time, but doing so will remove the masternode from the network.
Masternodes have been used with great success in other cryptocurrencies like Dash and PIVX. Owners of masternodes on these networks receive regular payouts from the network in exchange for their participation.
Once our upgrade is complete, CIF will offer masternodes in much the same way that Dash and PIVX do now.
How do you set up a masternode?
Running a masternode can be a little complicated, and it does require some technical skills. Once the network is ready, however, we will be posting more detailed guides on how to get your masternode up and running. For now, we are just going to go over some of the basic requirements. To set up a masternode, you will need:
100,000 CIF Coins
A VPS or other compatible server (see below) with 24/7 uptime
Computer skills to perform the setup
A VPS, or Virtual Private Server, is a virtual server instance that can be rented from various providers for a few dollars a month. More details on how to work with a VPS will be released later. Any server hardware that is able to run the software and network load of being a masternode will also work. All server types do require some technical skill to operate and set up, but with persistence and patience, most people should be able to do it. The average rental price of a VPS is between $2.50 and $5.00 per month, depending on provider and VPS type.
How are masternodes rewarded?
Masternodes contribute greatly to the functioning of the network. They do have some costs to operate, and so masternode operators are rewarded for their participation. Masternodes will receive 40 % of the block reward as each block is mined. The remaining portion will go to miners. Our block reward is 50 CIF every 2 minutes, so masternodes will get 20 CIF distributed equally amongst all of them. Let’s go over a few possibilities:
If there are…
100 masternodes on the network
then 20 CIF / 100 nodes = 0.2 CIF * 720 [blocks per day] = 144 CIF per day + transaction fees
per month thats about 4320 CIF
500 masternodes on the network
then 20 CIF / 500 nodes = 0.04 CIF * 720 [blocks per day] = 28.8 CIF per day + transaction fees
per month thats about 864 CIF
…and so on.
As you can see, the number of masternodes on the network directly correlates to the amount earned each day.
How much is that worth? This largely depends on the valuation of each CIF. Here are a few examples, based on the 100 masternode calculation. To get the 500 masternode numbers, divide the below numbers by 5.
4320 CIF @ $0.01 = $43.20
4320 CIF @ $0.02 = $86.40
4320 CIF @ $0.03 = $129.60
4320 CIF @ $0.04 = $172.80
4320 CIF @ $0.05 = $216
4320 CIF @ $0.25 = $1080
These numbers, however, are pure speculation based only on available estimates and do not include transaction fees. These estimates are also based on the current block reward rate. Your returns may vary greatly, so keep that in mind before investing in CIF or your own masternode.
Thanks to the unique abilities that masternodes provide to the network, new features will become available to users of CIF. Specifically, instant transactions (for an additional fee) and private transactions (also for an additional fee). These fees are paid directly to masternodes.
Do you want to run your own CIF masternode? You still have the opportunity to join into the final phase of our ICO which ends on January 1st of 2018. Stay tuned to our blog as we release more information about this new development for the CIF blockchain and the technical specifications for our blockchain upgrade!