There are several ways to make money in the cryptosphere. To begin with, you can buy and sell digital currencies for a profit through an exchange such as Coinbase. Secondly, you can run a Masternode.
Perhaps you may have heard crypto enthusiasts mention the term Masternode severally, and all this time you have been wondering what it is or how it works. Worry no more, in this post we shall cover everything you need to know about masternodes.
So, what is a Masternode?
A node can simply be understood as a computer that plays a part in ensuring the integrity of a coin network. The crypto space is not only decentralized but also distributed; therefore it functions by several people running nodes from different parts of the world.
That said, you require a full node to host a copy of the Blockchain (coin’s ledger) and thus support the network.
A Masternode is a crypto full node (computer wallet) that supports the network by hosting an entire copy of the coin’s ledger in real time. In return, the Masternode will receive crypto coins as a reward. This is another forum of mining
This must be differentiated from Proof of Work (PoW) mining. PoW, is the original consensus algorithm in a Blockchain network. In Blockchain, this algorithm is used to confirm transactions and produce new blocks to the chain. With PoW, miners compete against each other to complete transactions on the network and get rewarded. This would be explained in a latter post
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