Masternode
16/04/2026
A masternode is a type of full node in certain blockchain networks that performs additional functions beyond simply relaying transactions. In exchange, masternode operators earn a share of block rewards. The concept was popularized by Dash (DASH).
What masternodes do
Depending on the network, masternodes may provide:
- InstantSend — near-instant transaction confirmation (Dash)
- PrivateSend — on-chain coin mixing for privacy (Dash)
- Governance voting — participating in proposals for network upgrades and treasury spending
- Chain stability — providing a reliable, always-online full node
Requirements
Running a masternode requires locking a large amount of the native coin as collateral. For example:
- Dash (DASH) — 1,000 DASH required as collateral
- The collateral is not spent — it remains in the operator's wallet but must stay locked
This collateral requirement deters sybil attacks and ensures masternode operators have a financial stake in the network.
Masternodes vs. mining
Masternodes are not the same as mining. Miners solve Proof of Work puzzles to create new blocks. Masternodes provide services and share the resulting block reward with miners — they do not create blocks themselves. A network can have both PoW miners and masternodes simultaneously.
