If you are more familiar with cryptocurrencies or even own a large bag of some kind of crypto then you also must know the possibilities of running your own node. A cryptocurrency Blockchain network is famous because of its decentralized nature. One of the main concepts of such a network is a node or a wallet.
Nodes are the blood and veins of this network which handle transactions and take care of the security. Also, these nodes are performing computational tasks to mine blocks and are rewarded in a cryptocurrency token.
A very popular way of supporting the Blockchain network is with running masternodes. These masternodes differ from ordinary ‘nodes’ on the network. Also, different blockchain projects offer the possibility to run masternodes like the smartcash masternode solution of SmartCash.
What are masternodes
A masternode can be described as a computer or node which participates in a Blockchain network of computers. This node has a full and latest copy of the actual Blockchain stored on its hard disk. One of the most famous nodes out there are the Bitcoin full nodes, but also other Blockchain networks use this principle.
So can you compare a Bitcoin full node with other masternodes out there? The answer is no. Masternodes have properties which differ from normal nodes on a Blockchain network. The most common difference lies in the fact that they perform different tasks compared with common nodes. Some of the special tasks they deliver are:
- Increasing privacy of transactions
- Doing instant transactions
- Participating in governance and voting
- Enable budgeting and treasury systems in cryptocurrency
Smartcash Masternode What is it
Smartnodes or Smartcash masternode are servers that run a Smartcash wallet and handle transactions on the Blockchain. The servers provide the following services:
- InstantPay – These are instant transactions and it allows transaction to be locked in about a second. There is no risk of double spending and it’s trustworthy.
- SmartRewards – These are rewards for node holders and are calculated by the nodes and automatically distributed to the owners of nodes.
What do you need to host a SmartNode
- 100000 SmartCash coins
- A main computer(at your home) to run a local wallet and store your 100000 SmartCash coins
- A server in the cloud called VPS.
- A unique IP address for your VPS
Opportunity for participating a masternode
If you are a more non-technical person and not willing to challenge with Ubuntu and VPS servers in the cloud then there is another option for you available. Masternodes are popular for letting your crypto bag grow on a passive way because you get the rewards for supporting a Blockchain network.
In the past, running masternodes was only available for technical ‘geeks’ with a passion for Blockchain technology. With Blockchain and crypto currency getting more popular at a bigger audience, this also offers new services with opportunities to profit from it.
Masternodes365 is one of these new opportunities. It’s an online cloud platform which offers you the possibility to participate in several masternodes without the need to dive into Ubuntu and VPS manuals. In return, this platform wants an annual account fee of 25 USD.
How does this all work
Like any other online platform, you have to do a signup process first by giving your e-mail. After confirmation, you are ready to enter the platform.
The first thing you have to do before joining any masternode is paying the annual fee of 25 USD. This can be done with a credit card but also with cryptocurrency. In this example, I will go through the process by using Bitcoin as a payment.
By entering the ‘Dashboard’ you can see your username and two green checkmarks for ‘Email address confirmed’ and ‘Personal Information’. If this is not the case then you should enter some extra personal information.
First choose the wallet symbol which is right above next to your profile symbol and then I chose Bitcoin as an option.
You can see that a payment provider called CoinPayments will handle this transaction. Confirm the transaction with Bitcoin.
Now a pop-up appears which shows a randomly generated BTC address which you should send the funds to. Also, a payment ID is given which you should store or write down.
Now you just sit and wait for 2 confirmations and this should give you give a go for the platform.
Participate a SmartCash Masternode
Once the annual payment has been handled it’s time to buy you some coins which give you the right to participate a masternode. One of the benefits of this platform is that you can join several masternodes at the same time without buying all the needed coins to run one masternode.
In other words, it’s possible to join PIVX with 23% of the available coins and also join SmartCash with 35% of the needed coins.
In the example below I will join a Smartcash masternode and demonstrate how the transaction process goes from there.
On the left menu, I choose ‘masternodes pool’ and then choose ‘Participate’ button of SmartCash.
A ‘buy credits’ button appears.
The platform wants a 3% fee so you have to add 3% more to the coins you are willing to buy.
In the example I buy for $985 with 3% included.
You can choose different cryptocurrencies but in this example I choose to buy with Bitcoin again.
The same screen of Coinpayments appears which asks me to send Bitcoin to a random generated address.
The same procedure as paying for the annual fee happens now. This means that you have to wait for the Bitcoin network to confirm the transactions.
After you have paid the requested amount of coins with Bitcoin or any other cryptocurrency that is accepted on the platform you have to wait approximately 24 hours. This time is needed to acquire the requested coins at different cryptocurrency exchanges.
When the coins are bought for you they will be sent to a wallet which is generated for you on the platform and you will be notified by an email.
That’s all! No geeky VPS configurations or running Unix commands on an external terminal with the risk to be hacked by a third party. Hope you enjoyed this manual and I hope I have guided you in the right direction of being profitable with a Smartcash masternode.
Other articles you might like:
- Bitcoin what’s up with the fundamentals
- Running masternodes: Are they profitable in 2019?
- What is Blockchain?
- Ethereum Classic: Why is it still alive?
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