There is no denying that mining gives lucrative rewards. However, it requires setting up an expensive rig and some technical know-how.
What if I said you could earn the same rewards the miners earn without needing to go through the mining process?
In simple words, masternodes are computers on the network that keep the full copy of the blockchain and perform some added functions to keep the network secure.
Don’t be intimidated by the definition; setting up a masternode in blockchain projects like Divi is fairly simple. Plus, running masternodes is a great way of earning passive crypto income.
In this post, we will discuss what are masternodes? What are Divi masternodes and how to deploy them?
Let’s get started.
What are Nodes and Masternodes?
Before we dive into master nodes, let’s get into basics first.
As the blockchain ecosystem is decentralized, participating nodes (computers) contribute computational power to maintain the network.
A miner node verifies transactions on the blockchain and adds new blocks to the network by solving a complex Proof-of-Work puzzle; whereas, a full node keeps an entire copy of the blockchain to ensure the integrity of the network.
A masternode is an always active full node on a blockchain network that performs extra functions like processing anonymous and instant transactions in addition to running and governing a blockchain protocol.
Blockchain projects that have a two-tier structure have masternodes, tier-1 (miners) verify transactions, and tier-2 (masternodes) maintain the integrity of the network while performing added functions. Dash was the first to adapt to the masternode framework. Other projects like Divi, ZCoin, PIVX, to name a few, have embraced the masternode ecosystem.
To ensure that masternodes do not try to fool the system, masternode operators are required to deposit a hefty stake in the native token of the network. If the masternode is inactive for more than one hour, the node is removed from the masternodes list until further activation. Also, masternodes are disincentivized from their stake for malicious behavior.
Why Should You Set Up a Masternode?
Are you wondering – Why should you stake thousands of dollars worth of cryptocurrencies for setting up a masternode?
Well, if you wish to earn a steady and lucrative passive income by doing nothing, you should think of masternodes. In simple words, it is putting your crypto assets to work and earn interest.
If you visit Masternodes.Online you would know that 100% return on investments is not a pipedream on setting up a masternode.
Also, running a masternode does not require expensive hardware like in crypto mining. You can run a masternode on even your smartphone via a Virtual Private Server (VPS).
Still skeptical? Keep reading; in the next section, we will demonstrate how you can set up a masternode in the Divi project in just a few clicks.
Founded in 2017, Divi is a blockchain-based project that creates software solutions for making cryptocurrency accessible to all. Their first innovation is Divi masternode that enables users to set up a masternode within a few clicks and start earning passive income. In the year 2021, Divi is set to launch its SDK, which will enable users to build applications on the platform.
Setting up a Masternode
Here’s what you will before setting up a Divi masternode –
- Divi tokens depending on your masternode tier (each tier has different ROI)
Here’s a breakdown of the Divi masternode tier and the staking amount.
- Copper – 100,000 Divi
- Silver – 3,00,000 Divi
- Gold – 1,000,000 Divi
- Platinum – 3,000,000 Divi
- Diamond – 10,000,000 Divi
- Divi wallet application
- PayPal account
Thanks to Divi’s One-Click Masternode feature, you can set up a masternode in few clicks –
- Buy enough Divi tokens from an exchange platform.
- Download the Divi wallet application
- Open the wallet dashboard and you will see your Divi balance there. Now go to the ‘Masternodes’ tab.
- A prompt box will ask you to select your tier. Select your masternode tier based on your Divi wallet balance.
- Now you will be asked to subscribe to Divi masternode. Hit ‘Subscribe’ and pay an initial amount of $10 using PayPal. This amount will be charged monthly as a fee for VPS services.
- After payment approval, you have your Divi masternode ready (This will take a maximum of 15 minutes). You can see your masternode stats in the ‘Masternode’ tab of your Divi application.
That’s it; your Divi masternode is ready and you will start earning Divi tokens as block rewards.
In a Nutshell
Masternodes are 24×7 active servers that keep a copy of the blockchain and process private and instant transactions. Setting up a masternode will earn you decent passive income. All you need to stake a hefty amount of tokens, set up a masternode, and that’s it, your masternode income will start accruing.