Creating distributed consensus on the blockchain


Definition and purpose

Masternodes primarily exist to create a distributed consensus on the blockchain. While some cryptocurrencies achieve a distributed consensus through mining, masternodes have several characteristics that make them advantageous in terms of network reliability and direct benefits to operators & individual stakeholders alike.

On the technical side, a masternode is a cryptocurrency full node or computer wallet that keeps a copy of the blockchain in its entirety, in real-time, in perpetual operation and forms a decentralized network of communication. Masternodes are considerably different in their functionality than normal nodes because they perform several other functions apart from simply keeping the full blockchain and relaying blocks/transactions.

Why Masternodes are a good thing

What do you gain with a Masternode?

  • Transactions are Instant

    Having a multitude of Masternodes supporting the network allows for transactions to be completed almost instantly.

  • True Level of Decentralization

    They facilitate a decentralized management and administration of the distributed network in a way that will not favor any specific group.

  • Generate Passive Income

    Masternodes are assets that can increase in value while providing a residual and are 100% liquid. This is a great way to generate passive income.


Benefits of Masternodes

  • Increased Return on Investment

    $AEM Masternode Operators are rewarded in transaction fees for a maximized return on investment.

  • Suited for a Decentralized Marketplace

    Masternodes’ instant transaction capability opens the door to a frictionless user experience.

  • A Higher Standard of Network Safety

    Network security is increased by the inherently safe nature of Masternodes due to their resilience to monopolistic hacking attacks.

  • Network Preservation

    Masternodes stabilize the network and create $AEM demand since those operating MN’s must retain a coin treasury in order to process transactions.

  • Prevention of Misuse

    Due to the significant investment of resources and duties, the interests of MN operators are aligned with those of individual network users.

  • Participate in Governance and Voting

    Masternode operators democratically contribute to the improvement of the blockchain, ensuring that transactions are processed quickly and fairly along with other vital network duties like budget and development proposals.