What is Masternode?
Crypto Glossary Definition
A full node or wallet that keeps the complete copy of the blockchain, but also performs additional functionality that is specific to a given cryptocurrency (such as participating in governance, or facilitating instant transactions). Someone who runs a masternode typically needs to own a certain amount of tokens to qualify, and may in turn earn passive income from it.
Why Masternode Matters
A masternode is a server that performs extra network functions (beyond basic validation) in exchange for a share of block rewards, usually requiring the operator to lock up a significant amount of that coin as collateral — Dash popularized the concept.
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