What are Masternodes?

Master, tell me all!

Also known as bonded validator systems, masternodes are a series of servers that underpin a blockchain’s network. They are responsible for enabling specific services that miners under proof of work cannot accomplish.

Syscoin and Masternodes

Much like proof of stake, Syscoin Masternodes rely on staking a certain amount of Syscoin to operate a Masternode. To establish a Syscoin Masternode, you need 100,000 Syscoin.

Syscoin applies masternode functionality to it's decentralised Block Market. With Syscoin, users can access the blockchain equivalent of peer-run commerce sites like eBay. Masternodes will be responsible for facilitating anonymous and instant payments not only on the Blockmarket, but with the use of Assets aswell.

Syscoin Masternodes also implement the following services:

  • - Instandsend: Masternodes accommodate nearly instantaneous transactions
  • - PrivateSend: Masternodes allow for users to make and receive anonymous payments
  • - Decentralised Governance: Masternodes adjudicate and vote on technological and financial developments for the blockchain
  • - Z-DAG: The ability to send transactions instantaneously, with Zero Confirmations.

Syscoin Masternodes protect the blockchain from network attacks, in the same vein as traditional proof of stake algorithms. It’s often expensive to accumulate enough of a currency to create a masternode. This expense helps keep the network decentralised, as it would take an ungodly amount of money to purchase enough currency to have a monopoly on its nodes.

The cost of operating a Masternode also keeps operators honest. Unlike Bitcoin miners, who may switch from one coin on its blockchain to the next based on profitability, operators are incentivised to properly maintain and upkeep their Syscoin Masternodes. The exorbitant initial investment serves as collateral, whereby if operators want their investment to pay off, they have to play by the blockchain’s rules. Between the high operation costs and promising return on investment, it’s in an operator’s best interest to operate his/her node properly and without any malicious intent.

MASTERNODE SENIORITY

It’s been noted that Syscoin price fluctuations may in turn cause fluctuations in the number of masternodes running on the network. To mitigate this and incentivise nodes to provide services consistently for long periods of time, we have introduced a seniority mechanism that increases ROI for long-term nodes. Every 4 month period in the lifespan of a single masternode will result in a 3% increase in the ROI for that masternode. A maximum ROI bonus of 27% is possible if the masternode is operational for 3 or more years.

1 month in the Syscoin Blockchain = 43,800 blocks. 4 months is 175,200. So whatever your block height was at time of transcation, add 175,200 to it and that's when the 1st round of Seniority kicks in.

So for example;

  • You sent your 100,000 Syscoin at Block 1500.
  • 175,200 + 1,500 = 176,700.
  • 176,700 = Your first increase in Seniority.
  • 176,700 + 175,200 = 351,900.
  • 351,900 = Your second increase in Seniority.
  • So on and so forth.

Please note that Seniority is based purely on the Transaction Block Height. Stopping your Syscoin Masternode, restarting your server, closing QT, upgrading Masternodes, Initialising your Masternode, changing your IP address, and anything you can possibly think of does not effect your Seniority. The ONLY thing that will effect your Seniority is if you MOVE YOUR 100,000 Syscoin, which creates a new transaction, giving you a new Block Height.

Requirements to Setup a Syscoin Masternode:
  • 100,000 Syscoin

  • A VPS installed with Linux with system specs;

  • MINIMUM REQUIREMENTS
  • Ubuntu 16.04 LTS x64
  • 1+ CPU
  • 2GB+ memory
  • 40GB+ SSD hard drive
  • Static IP Address 

  • RECOMMENDED REQUIREMENTS
  • Ubuntu 18.04 LTS x64
  • 4+ CPU
  • 2GB+ memory
  • 40GB+ SSD hard drive
  • Gigabit Network
  • Static IP Address 

Ready to get setup? Buy Syscoin from here, and set your Syscoin Masternode up from here.

"A Community initiative to help out fellow Sycoiners" - bigpoppa

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