Masternodes – Explained Super Fast

♫ Hey there, guys. Welcome back to PIVX Class. Today’s video is something
that is long overdue. We’re going to explain
Masternodes super fast. We’ll start with a loose definition
of what Masternodes are, and then an example of some of
the things that they can do. Okay, so Masternodes
are special entities that must be operated
off of a server. They are required to run 24/7 and remain synched with the
blockchain at all times. They also require the owner
to lock up a certain amount of the given cryptocurrency
to create a Masternode. If we use Dash as an example, you must lock up 1,000
Dash to make a Masternode. A bunch of encrypted data is routinely
moved through these Masternodes. While it wouldn’t be
easy for a Masternode to tamper with this data anyways, the fact that such a large
amount of their own money is on the line is a good
deterrent to even trying. As a compensation for their investment
and the work that they provide, Masternodes are usually paid
some amount of compensation. Their purpose for being is also a little
different than stakers or miners. Stakers and miners process
blocks of transactions. But in coins that use Masternodes, the Masternodes perform many of the
secondary features on the network. One of those well-known features
is providing instant send options. Utilizing a few Masternodes, you can have them
confirm a transaction before the block is
actually complete. Not all Masternode coins
have this feature, but it isn’t uncommon. PIVX Masternodes are what enables
you to vote in the budget system. Each Masternode is worth one vote. Additionally, Masternodes
can play a major part in the privacy features of a coin. Again, it depends on the coin. Not all Masternodes are the same. They can seem pretty daunting
to get into at first, but with some education, they aren’t a particularly
tough thing to learn. At least in terms of
learning to run one. Plus, they do require you
to own a lot of currency. A Dash node costs
$220,000 at this time. But some Masternodes only
cost a few thousand dollars. A lot of money to be sure, but the ability to directly
participate in the network and help keep everything running
is a pretty cool opportunity. And that’s it. That’s the short version
of Masternodes. Not too complicated, really. They provide secondary but very
important features to the network. If you found this video helpful, please leave a like
and share it around. Thank you for tuning in. I love having you here, and I will see you in
the next PIVX Class. ♫

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