Most of the Masternodes work on consensus mechanism known as Proof-of-Stake or Hybrid Proof-of- Stake + Proof-of-Work.
Masternodes are the nodes in the immutable blockchain network which processes instant transactions and introduce new blocks in the network.
Technically, Masternode is a cryptocurrency full node which can also be considered as a computer wallet that stores the complete copy of the active blockchain in real time.
Dash was the first coin to originally develop the masternode to implement services like InstaSend, PrivateSend, and Decentralized Governance.
Some of the unique functions of Masternodes include:
- Involved in decentralized voting systems, Masternodes stores all information about the network in wallets that are fully integrated and 24*7 connected with the blockchain network.
