Masternodes - The game changer.
JasonCinvest last edited by JasonCinvest
In my last article The Importance of Transparency I talked about the need of transparency. In this article I will be covering two important questions- Why masternodes are the next big thing? & Why privacy coins are going to play a bigger role in the future?
What is a Masternode?
Simply put, a masternode is a server on a decentralized network. It is utilized to complete unique functions in ways ordinary nodes can’t. It can be used for features like direct send / instant transactions or private transactions. Because of their increased capabilities, masternodes typically require a sizable investment in order to run. But this is where incentivization comes into play, as masternode operators are rewarded by earning portions of block rewards in whatever given cryptocurrency they’re facilitating.
No masternode is quite alike as each network has its own pros and cons, but with that said, every system approaches payouts in a different way. Some cryptocurrencies pay out rewards to masternode operators multiple times in a day, whereas other projects payout operators once daily.
Why Masternodes are the next big thing?
Masternodes are a very important aspect for ANON. They add a huge value to it, they can also be used for transactions as mentioned above & they also help in maintaining a base level price for the cryptocurrency incorporated with them. How ANON's masternodes will work - Anon plans a very low level entry point for anyone into masternodes, One needs to hold 100 ANONs to set up a personal masternode. 100 coins will be kept in as a collateral and one masternode will be allowed per 100 tokens. The block reward will be distributed as a 35% reward to the masternode holders. People often use masternode income as a passive income and is a great opportunity to make money. This way people can contribute to the project every day and make money side by side.
Masternodes are surely the next big thing and I see a future with all the cryptocurrencies implementing masternodes in some form of the other, masternodes not only profit the blockchain but it also profits the masternode creator. Its basically a win win situation for both the Currency and the User.
Why privacy coins are going to play a bigger role in the future?
Privacy is the hottest concept in the current cryptocurrency scenario. There has been an uproar of privacy coins in the recent times because as our spending habits and transactions should be private and as anonymous they can be. In the future privacy coins will overshadow most of the current transaction based cryptocurrencies. Privacy transactions is a huge sector and ANON is focused on it. The team focuses on anonymity greatly and hopes that it can change the privacy cryptocurrency space.
Due to the permanent nature of the blockchain, if at any point your true identity is linked to a wallet address, then the whole history of your transactions then becomes public knowledge. There are even companies being created nowadays dedicated to forensic analysis of public blockchains for purposes of tracking tax evaders and other criminal activity. This defeats the purpose of privacy but slowly and steadily today’s world is realizing the important of privacy and keeping things anonymous. ANON will be keeping all the transactions on it blockchain private by using the zkSNARK protocol. This will not only make a transaction anonymous but highly and almost difficult to trace back to its origin.
The future has a lot in store for masternodes and privacy based currencies and ANON supports both of them.
You can visit the ANON website at www.anonymousbitcoin.io
Nice. I didnt know ANON was going to have masternodes. I see you say entry point is 100 ANON. From this, I can infer that there will be higher tiers (?). Do you have info on what the higher tiers will be?
Thanks for posting about ANON. Your posts are very interesting, lots of good info