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What is Masternode?

A masternode is a type of full node or server on a blockchain network that performs specific functions in addition to those of a regular node. In the context of cryptocurrency, a masternode typically is a full node that is responsible for validating and relaying transactions, as well as performing other functions such as governance and privacy.

To run a masternode, a user typically needs to hold a certain amount of the cryptocurrency (often referred to as collateral) and have a dedicated server with a high-speed internet connection. In return for providing these services, the operator of the masternode is usually rewarded with a portion of the block reward or transaction fees.

The exact functionality of masternodes may vary depending on the blockchain, but they are often used to improve the scalability, privacy, and governance of a network. Some popular examples of blockchain projects that use masternodes are Dash, PIVX, and Zcoin.

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