Masternodes enable investors to earn a steady passive income by contributing a vast amount of computing power to a blockchain network.
Masternode hosting enables one to engage with cryptocurrencies on a deeper level. Users can play a pivotal role in the blockchain network’s operations, often earning passive income in return. However, this approach requires some technical knowledge and a steep initial investment to kick off.
While ordinary nodes in blockchain networks are primarily responsible for transaction validation, masternodes carry out extra responsibilities, such as enabling fast transactions and taking part in network’s governance decisions. Horizon is a well-known project utilizing masternodes.
This article explains what masternodes are and how they function, multiple ways to earn from operating masternodes, the difference between masternodes and other passive income strategies in crypto, and the risks associated with running masternodes.
