Masternodes are a series of servers that underpin a blockchain’s network. They are responsible for enabling specific services that cannot be accomplished by miners using a Proof of Work system alone. Much like with Proof of Stake, masternodes rely on “staking” (or locking up) a certain amount of the currency within the currency’s network.
Masternodes protect blockchains from network attacks in much the same way as traditional proof of stake algorithms. It’s expensive to accumulate enough currency to create a masternode, and prohibitively expensive to accumulate enough currency to have a monopoly on the entire masternode network. This cost of operation also helps to keep operators honest and invested in the future of the coin, incentivizing them to properly maintain their masternodes.
Once it is live, the masternode accommodates a unique series of functions. For Pirl, these functions include Content Storage, Communication, Entertainment products, and P2P market trading.
For the different setup options please visit our Masternode Setup page.