Masternode Definition - Glossary

A masternode is a specialized server in a blockchain network, enabling advanced functions and earning rewards for its operator.

A masternode is a dedicated server within a blockchain network that performs essential functions beyond standard nodes. These include transaction verification, governance voting, and enabling features like instant transactions or private transactions. To operate a masternode, one typically must hold a significant amount of the network's cryptocurrency as collateral. This incentivizes network security and stability. In return, masternode operators receive regular rewards, often as a share of the network's block rewards. Operating a masternode requires technical expertise and a reliable server setup, making it a commitment for those seeking passive income and active participation in the network.