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  • DECENOMY Documentation
  • Basics
    • ▪️What is a Blockchain?
    • ▪️What is a Masternode?
    • ▪️What is a Spork?
    • ▪️Staying safe on Discord
    • ▪️How to secure your environment
    • ▪️Staking statistics on VaultWatch
  • Tutorials
    • DECENOMY Explorer
      • ▪️Overview
      • ▪️Latest blocks
      • ▪️Masternodes
      • ▪️Network
      • ▪️Search by Block and/or Hash
      • ▪️Search by Tx ID
      • ▪️Search by Address
      • ▪️Explorer API
    • DECENOMY Multinode Script
      • ▪️Environment basis
      • ▪️Script Screen Overview
      • ▪️Menu Structure
      • ▪️Main Menu
      • ▪️Coin Selection
        • Reinstall masternode multinode
        • Masternode multinode management
        • Stats wallet and masternode
        • Wallet management
        • Others
    • DECENOMY Wallet
      • ▪️How to use the DECENOMY wallets
      • ▪️Encrypting a wallet
      • ▪️Extra connections (addnodes)
      • ▪️Fast sync with a Bootstrap
      • ▪️Wallet update
      • ▪️How to Identify and Fix a Fork
      • ▪️Staking process on desktop wallet
      • ▪️Staking process on a VPS
      • ▪️Staking Best Practices
      • ▪️Backup Wallet on an external device
      • ▪️Restoring a backup from an external device
    • DECENOMY Masternodes
      • ▪️Masternode Multinode easy to deploy
      • ▪️Masternode Hosting With Flits Wallet App
      • ▪️Masternode collateral update
      • ▪️Setting Up a Virtual Private Server (VPS)
      • ▪️Using a Terminal Emulator - PuTTy
    • Exchange
      • ▪️How to buy Decenomy coins on Birake Exchange
        • User Account Creation and KYC Verification
        • Deposits and Withdrawals
        • Trade (Buy and Sell)
      • ▪️Birake Exchange Affiliate Program
    • Flits Wallet App
      • ▪️Getting Started with Flits Wallet App
      • ▪️How to Use the Flits Wallet App
      • ▪️How to Recover An Old Wallet Using the Seed Phrase
      • ▪️Adding and Removing a Wallet
      • ▪️Wallet Operations ( Send, Receive, Transaction history)
      • ▪️How to Top up Fee Credits
      • ▪️How to Deploy Masternodes in the Flits Wallet App
      • ▪️Settings Overview
      • ▪️Running Flits Wallet App on Windows and MacOS - Bluestacks
      • ▪️Flits Wallet In-app Support
      • ▪️Using the Flits Extraction Tool
      • ▪️Installing Flits Wallet App APK File on Android
  • Coins
    • ▪️Azzure (AZR)
    • ▪️Beacon (BECN)
    • ▪️Birake (BIR)
    • ▪️Cryptoflow (CFL)
    • ▪️Cryptosaga (SAGA)
    • ▪️Dash Diamond (DASHD)
    • ▪️Eskacoin (ESK)
    • ▪️Flits (FLS)
    • ▪️Jackpot (777)
    • ▪️Kyanite (KYAN)
    • ▪️Mobility Coin (MOBIC)
    • ▪️Monk (MONK)
    • ▪️One World (OWO)
    • ▪️Peony (PNY)
    • ▪️Sapphire (SAPP)
    • ▪️Suvereno (SUV)
    • ▪️Ultra Clear (UCR)
  • Blockchain Development
    • DECENOMY Standard Wallet
    • DECENOMY Testnet tKYAN
      • Compile Your Own tKYAN Binaries
      • Pre Build tKYAN Binaries
    • Improvements
      • Last Paid V2, a deterministic approach
      • Masternode Payment V2, a sequential and fairer distribution
      • Multinode, Multi-Instance Hosting on Masternode Full Nodes
      • Masternode Collateral Window, Mitigating Network Instabilities
      • The Emergence of a Progressive Masternode Collateral System
      • Dynamic Collateral
      • EBF system
      • Dynamic Rewards
    • Commands
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On this page
  • Masternode Specialized Tasks
  • Masternode Collateral Requirement
  • Rewards for Running a Masternode
  • Creating a Masternode

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  1. Basics

What is a Masternode?

Detailed information about the Masternode concept and how it works

PreviousWhat is a Blockchain?NextWhat is a Spork?

Last updated 1 year ago

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A Masternode (MN for short) is a full node in a blockchain network that helps secure the network by consensus and improves the blockchain's functionality.

It operates on a dedicated server with a static IP address while ensuring a high level of availability and reliability. Furthermore, it is only eligible if it meets the required amount of secured collateral.

The MN owner is compensated for contributing to the network's capabilities with a portion of the block reward.

Masternode Specialized Tasks

A Masternode enhances the functionality and security of a blockchain network. They validate and store blocks of transactions, helping to maintain the integrity of the network's ledger and prevent malicious activities like double spending, thus helping to ensure the security and immutability of blockchain data. Masternodes can also help improve the scalability and stability of the blockchain network. By offloading certain tasks and responsibilities from regular nodes, Masternodes help reduce the network load, improve performance, and ensure efficient operation even as the network grows.

Masternode Collateral Requirement

Operating a masternode requires a collateral amount of the cryptocurrency to be locked in a dedicated wallet. This collateral ensures that the Masternode owner has a financial stake in the network and discourages malicious behavior.

The amount of coins in the collateral is always stipulated by the blockchain and is a unique value that must be exactly as requested. The value must be exact, without any deviation, and it must be done in a single transaction. A frequently asked question is whether the collateral allocated in a Masternode is permanently lost. The answer is NO. When you run a Masternode, the coins remain in your wallet. If you decide to stop running the Masternode, the coins become "unlocked" and can be used again without restrictions.

Rewards for Running a Masternode

To reward the Masternode owner for playing such an important role in the network, a percentage of the block reward is delivered directly to the wallet from which the masternode was created (i.e. the wallet with the collateral). When considering running a Masternode as an investment allocation, things like Return on Investment (ROI) are important concepts to understand. ROI is the percentage of initial investment that can be expected to earn back annually. Calculating ROI, in this case, involves several factors, such as the Masternode's collateral, the block reward, and the current number of Masternodes on the network. In general, as more Masternodes participate, the ROI decreases. On the other hand, a decrease in the number of Masternodes literally means a higher ROI. It can be calculated as follows: ROI = (((MN reward per block x number of blocks in a year) / number of MN currently on the network)/ collateral amount)x100 Information on the above points is always provided by the project.

Creating a Masternode

With the help of our unique Masternode Multinode Script, a task that often requires a certain level of technical knowledge has been simplified. This makes it possible for anyone to seamlessly deploy a masternode.

A tutorial on how to easily install and deploy a Masternode using this DECENOMY Masternode Multinode Script can also be found on this website: eploys

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