User:Nordic532/sandbox

A masternode is a full node that not only downloads the entire blockchain and keeps it updated in real time; it can also perform various operations inside a network; the fundamental ones are granting anonymous and instant transactions, as well as governance through voting.

A masternode requires a certain amount of coins, called a collateral, to be locked in a wallet, in order to function. This prerequisite for deploying a masternode is set to guarantee the commitment of the operator, and an accurate performance of the masternode. Moreover, the collateral helps protect the network from Sybil attacks, in which case multiple masternodes are created by an attacker, with the purpose of interfering with network operations. Collateral funds are not untouchable, they can be sold, spent, or moved; however, dismantling the collateral will result in turning the masternode inactive.

Masternodes receive rewards for all the services they provide.