Masternode is a full node (computer with the whole unpruned ledger) that supports the network by hosting an entire copy of the blockchain ledger in real-time. In return, the Masternode will receive the crypto coins as a reward. It is a great alternative to mining.
Masternodes are servers or home computers that have a full copy of the blockchain ledger and are collateralize to provide additional services and ensuring that all other nodes are able to connect and get a full copy of the public ledger at any given points.
Second Layer Verification
Masternodes must be backed by collateral denominated in crypto coins often in large amount ( 10,000 TRVC ), and in return, their operators receive regular payment of up to 35% of the block rewards for the services they provide to the network. With the collateral, the Masternodes can provide certain services (DirectSend and ExclusiveSend) to users besides being a trusted party to the network of computers. These services are above the Proof-of-Work Layer hence known as the second layer verification.
One of the task that the masternode can facilitate is DirectSend (DS) where the masternode holds the Unspent Transaction Output (UTXO) and marked it as spent the moment it is being broadcasted and before it is being added to new blocks. If a block is found broadcasting the same UTXO in a new transaction, the Masternode will penalize and prevent the other nodes and miners from performing PoW on the transaction and rejects it. This prevents double-spending and is able to provide trust to the receiver that the transaction has enough confirmation before it is even added to the block.
Another task that the masternode is facilitating is the ExclusiveSend (ES) where the masternode combines multiple inputs from a different sender and send them to a different receiver other than the one that they are intended to receive directly. This is useful when we are trying to send crypto coin and we do not want the other party to know how much crypto coin that we are having by looking at the address that have sent them the coin.
TriveGovernance Proposals and Concepts
As highly committed custodians of the project, masternode operators are given the opportunity to vote each month on up to 30% of the block reward to fund community projects supporting the Trivechain ecosystem through TriveGovernance.
The system works as a decentralized voting mechanism set up in the rules governing the blockchain, where budgets for specific projects are proposed, then the masternodes as a whole vote on them. Each project, if it passes, is added to the total budget and paid directly from the blockchain to the person doing the work. This allows Trivechain Public Protocol to hire core developers, community builder, supporting team and pay them directly after approval of the work in a decentralized fashion.
A masternode will have one vote to vote on a proposal (technically a governance object on the blockchain) by executing the command “masternode vote yes”, “masternode vote no” or “masternode vote abstain” in the trivechain core by signing the message with their masternode key. The votes then propagate across the network and are tallied according to instructions followed by the network itself. Budgets under discussion and voting progress can be viewed using the command “masternode budget show”.
Note: This article was initially posted on trivechain website as a blog post and now being moved to Medium official page
A masternode votes on a proposal (technically a governance object on the blockchain) using the example command “masternode vote yes”, “masternode vote no” or “masternode vote abstain”. The votes then propagate across the network, and are tallied according to instructions followed by the network itself. Budgets under discussion and voting progress can be viewed using the example command “masternode budget show”.