Now in bitcoin and other cryptocurrencies Twitter account unfolds real battle. And although in itself this fact not surprise, this time it occurs between multiple cryptocurrencies that use the so-called masternode (supernodes with more features).
Definition masternode flexible enough. In General, masternode are called the nodes of the blockchain, which carry out extra work in addition to the usual verification and transaction propagation.
The idea itself is not new, but the mechanism again attracted attention after several significant projects, such as ZenCash (now Horizen), Gold Zcoin Poker and started to use masternode. In addition, other projects such as EOS and Tezos is actually also use masternode, though they call them differently (for example, the creators of blocks).
Unfolding in the Twitter battle very entertaining. In the center there is a competition in which blackany using masternode compete with each other. It was initiated by Brian Colwell (Colwell Brian), blogger and consultant cryptocurrency startups, who noted the passions surrounding the competition.
“Initially, we ran the contest as something like a martial arts tournament, which turned into street battles,” he wrote in his Twitter.
Tournament #MasternodeMeBro18, which aims to identify the community that best control their masternode, began July 3 and will end on October 28.
First, the competition was attended by 64 coins using masternode, however, by the end of the third round that recently ended, in the competition there are only 16. 11 416 votes were given to different teams throughout the competition. And if you look at the Twitter hashtag of the contest, it becomes clear that projects participating actively encourage its users to support.
In fact, the battle has become so fierce that some of the participants of the last round were convicted of voter fraud. Partner Colella, OmniAnalytics, found massive vote from multiple IP addresses, which led to a re-vote the final battle of the last round. The fourth round of the competition began on 28 August.
The main question is where did this sudden interest in masternode? According to industry observers, including Colwell, the mechanism of supernodes allows peers to receive the income, which is much higher than one would expect, given the popularity of some cryptocurrency. This passive income has encouraged Colwell not only be interested in projects masternode, but also to organize the tournament.
Like in the early days of Bitcoin
The authorship of the idea of supernodes belongs to the cryptocurrency Dash, which needed masternode that can help in the deployment of functions to improve privacy. To participate in the network as superuse, the user must purchase the required number of coins.
“The launch of masternode encourages people to buy coins and sell them for longer periods of time, thereby reducing the turnover of coins,” said Sid Kalla (Kalla Sid) from the blockchain consulting company Turing Advisory Group.
Thus it is necessary to run masternode funds cannot be called excessive. Thus, the launch superuse something like mining bitcoin as a hobby in the early days of cryptocurrencies. Colwell States that he manages 20 masternode.
But things are not so simple – there are some indicators to keep in mind. The most important variable is the value of the cryptocurrency.
“It makes no sense to keep something for the income of 10% per year in the coin network if it falls to 90% against bitcoin”.
Earnings from starting up masternode varies greatly. The Website Masternodes.Online lets you see what your upfront costs and yield characteristic of different projects masternode. As a rule, mastered very high interest (100% per year – the usual case) in his own coin, to compensate for its volatility on the market.
For example, if masternode offering a reward of 10% for a bet of 100 coins, the owner superuse should get 10 coins a year.
According to Colwell, a reasonable amount to buy coins to start masternode ranges from $2 500 to $5 000. But the word “price” may not be quite correct, because the purchased coins are not lost. Masternode blocks them until, until the operator wants to get a reward.
Other types of income
In addition to rewards network support, Kalla also pointed to the projects that offer more than one form of reward. And although many of the projects that use masternode, a little underground, the idea begins to gain more and more popularity.
For example, Swarm startup Fund, a graduate of the Techstars accelerator, which raised $5.5 million through the ICO has launched a
system mastered in August. According to the latest update from the company, 9% of the total number of tokens was posted to the interested users in masternode. The idea of a startup was to allow people to invest in projects for which the initial costs are usually too high.
Thus, in addition to validation of the transaction masternode Swarm decide where to invest some of the reserve tokens to Swarm (later sharing the returns of these investments). The theory here is that the profit from the management of the consensus is higher at an early stage, and the investment will pay off later, which will give the participants an incentive to enter early and stay.
“Unlike other systems of rewards, our system mastered increases fees for an extended period of time,” said Philipp Pieper (Pieper Philip), CEO of Swarm.
Signals and incentives
Competition Colwell becoming more attractive for projects with a mechanism mastered. First prize for the leading projects were in fact only advertising, but things have changed. Began to appear real prizes for successful projects. However, they did not provide himself Colwell, and a new startup called Kalkulus.
The startup was created to give users the ability to run masternode without actually requiring them to control by the host.
However, Kalkulus provides this service for a limited number of projects. The reason for this is not only limited capacity, but probably some clarity that compels us to choose only the best projects.
Thus, the company promised
to provide service to four projects with the highest number of votes in the third round — Solaris, Deviant, Phore and Rupaya.
This proposal can be considered something of a masternode-as-a-service, so many projects will want to get listed on the platform as it lowers the barriers to entry to members of the network. It is the competition Colwell company has simplified the selection of projects for the platform, allowing you to make a choice only in favor of the most promising of them.