What is the difference between node and masternode projects?
Asked 3 years ago
I don't understand the difference between node and masternode projects. Please can someone help me understand?
Pedro Hopkins
Wednesday, July 20, 2022
A Masternode resembles a node – a computer whose data is linked to other computers – on a blockchain but with extra functions. Generally, you require Masternodes to collateralize some of your assets and earn passive rewards.
You minimize the circulating supply of an asset by collateralizing or staking it in a Masternode. Lower circulating supply implies a higher demand and lower selling pressure.
On the other hand, a node is a Masternode that offers extra functions to a blockchain, facilitating the creation of a more efficient product with a better user experience. These extra services include:
- Governance
- Rapid transactions
- Private transactions
- Private web applications
- Private web browsing
- Decentralized exchange (DEX)
The major crypto projects with nodes include Dash, Ether1, Loki, Blocknet, REMChain, Holochain, Syscoin, and XtendCash.
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