Intro to Masternodes: The Crypto Underdog
‘The Masternode and Passive Investment’ may sound like an oxymoron when described in the crypto space but if you look further into Masternodes, you’ll wonder why you hadn’t discovered them earlier!
What is a Masternode?
A Masternode is simply a server running on a decentralised network performing functions normal nodes cannot achieve. A sample of such special functions are:
● Overseeing private/direct transactions
● Facilitating instant transactions
● Participating in governance
● Enabling budgeting and treasury systems
Proof of Work vs Proof of Stake
Understanding the two concepts of ‘Proof of Work’ and ‘Proof of Stake’ help garner an appreciation for Masternodes. Both are the primary methods of validating transactions across the network and different cryptocurrencies implement separate methods.
Proof of Work
We have all heard of Bitcoin mining; this uses ‘Proof of Work’, whereby the task is to define a complex computer calculation. Network miners compete to be the first to solve the problem, with a reward given to the first who does. This mechanism has proven to be very secure and Bitcoin can hold its head high as a protocol that has never been hacked. This intense competition through ‘mining’, however, has led to the need for an incredible amount of energy and hardware resources. In fact, a single Bitcoin transaction requires the same amount of electricity as that required to power an entire American household throughout the day.
Proof of Stake & Masternodes
On the other hand there is ‘Proof of Stake’, which is backed by a financial deposit to provide the same level of security as Proof of Work. Masternodes are the next generation solution, which also provide additional services to the network, like anonymity or instant payments.
Masternodes generate revenue for their owners but can be tricky to set-up. They require quantitative analysis to determine the best performing Masternodes, an understanding of Linux, a VPS server running night and day and of course a staked deposit, which can be as much as a deposit on a very expensive house. The benefit however, is that once they are up and running, Masternodes provide their owners with a regular passive income.
Investing in Masternodes
If you’re one of us — the ones who aren’t millionaires because we didn’t invest in crypto early enough — you might be thinking Masternodes are for the crypto glamours. At INDX we believe Masternodes should be for everyone and not just the privileged few. It was these libertarian principles that made us fall in love with Crypto in the first place. To this end, we use our proprietary algorithm to select the optimum portfolio of Masternodes, which we host on enterprise-grade servers with world-leading security credentials. Every quarter we will return 50% of the profits back to INDX token holders and reinvest 25% to grow the portfolio and future returns. All you need to do is hold the INDX token and make the aspiration of predictable and stable crypto earnings a reality.
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