‘Nodes’ are a recurring component in cryptocurrency. As a device on a blockchain network, a node aids in the technology’s functionality and helps it survive. There are other kinds of nodes, one of which is called a ‘master node’ and is also the topic of this article. We’ll explain what master nodes are, what platforms you can find them on, and how passive income comes into play.

What is it? Part 1

‘Master nodes’ are full nodes that encourage node operators to perform the essential consensus functions involved in successfully running a blockchain.

Their existence comes from a need to solve a problem involving full nodes. The increasing cost and technical intricacies with running full node computers on a blockchain network cause issues. As a result, there’s a decline in the number of full nodes due to it not being profitable. Most resources will then go to mining pools by way of their mining activities. This reduction in full nodes affects the blockchain’s efficiency, leading to longer transaction processing times and network blockage.

This is what master nodes attempt to solve by acting as full nodes. Moreover, their operators benefit financially in a similar fashion to miners in a ‘proof-of-work’ (PoW) system. They work on a collateral system to ensure that they provide authentic services as a backbone to the blockchain network. For that reason, it is common to regard them as “bonded validator systems.”

What is it? Part 2

‘Passive income’ refers to earnings deriving from a rental property, limited partnership, or other enterprises with no active involvement of a person.

Like with ‘active income’, this is usually taxable. Be that as it may, the Internal Revenue Service (IRS) often treats it very differently. Analysts consider ‘portfolio income’ to be passive income, so dividends and interest are therefore passive.

Passive income is among the three main categories of income; the other two being active income and portfolio income. In recent years, many have a tendency to very loosely apply the term in certain scenarios. Investopedia editor, James Chen, breaks it down further as the following:

“Colloquially, it’s been used to define money being earned regularly with little or no effort on the part of the person receiving it. Popular types of passive income include real estate, peer-to-peer (P2P) lending and dividend stocks.”

Advocates for passive income are typically enforcers of a ‘work from home’ and ‘be your own boss’ professional lifestyle. The earnings that people usually associate with this are:

Gains on stocks

Interest

Retirement pay

Lottery winnings

Work from online

Capital gains

In accordance, with the IRS’s Passive Activity Losses Real Estate Tax tips:

“…passive activity is any rental activity OR any business in which the taxpayer does not materially participate. Nonpassive activities are businesses in which the taxpayer works on a regular, continuous, and substantial basis. In addition, passive income does not include salaries, portfolio, or investment income.”

Ideal platforms

There are an array of master nodes that are suitable for potentially earning passive income. Below is a list of these particular nodes that are more than worthy of the attention of crypto investors.

1 – Dash

This platform is the pioneer of the concept of master nodes. It is a revolutionary digital money system for instant, private payment online or in-store. They use their secure open-source platform with thousands of users host worldwide. Master nodes help power two crucial network features: InstantSend and Private Send. These features increase network speed and support transactional privacy.

Requirement: 1,000 DASH

1,000 DASH Price: $157.07 ($157,070 total)

$157.07 ($157,070 total) Nodes: 4,911

4,911 Listed Return of Investment (ROI): 6.32%

2 – Zcoin

This is a privacy-centric digital currency project that the Zerocoin Protocol enables. It employs master nodes to aid several of its privacy-presenting features. This platform is one of the earliest privacy-centric digital currency projects. Furthermore, this master node program is one of the most highly regarded when it comes to its general ease and performance.

Requirement: 1,000 XZC

1,000 XZC Price: $7.24 ($7240 total)

$7.24 ($7240 total) Nodes: 4,554

4,554 Listed ROI: 17.91%

3 – PIVX

This is another privacy-centric digital currency project that prides itself on four features: Anonymous, Instant, Verifiable, and Open-source. The community is hands-on making it easy to receive support from other MN holders. This is assuming you want to run a master node. Moreover, you can set up a master node all by yourself. Alternatively, you can get help from service providers who handle the more technical aspects of it.

Requirement: 10,000 PIVX

10,000 PIVX Price: $0.66 ($6600 total)

$0.66 ($6600 total) Nodes: 1,625

1,625 Listed ROI: 10.33%

4 – NIX

This platform is a digital currency project whose focus is also primarily on privacy. Unlike the previous two platforms, NIX includes smart contract capabilities on its network. This lets users create decentralized applications that support high-level transactional privacy and anonymity.

Requirement: 40,000 NIX

40,000 NIX Price: $0.22 ($8800 total)

$0.22 ($8800 total) Nodes: 349

349 Listed ROI: 15.04%

5 – Wagerr

This is a digital currency system that basically functions as a sports book. Its purpose is to be a platform for betting within the sports industry. To this end, it uses blockchain technology and a specific smart contract to power betting on a variety of sporting activities. Master nodes alert users of any upcoming events so that they can bet on them in good time.

Requirement: 25,000 WGR

25,000 WGR Price: $0.07 ($1750 total)

$0.07 ($1750 total) Nodes: 2,731

2,731 Listed ROI: 2.2%

6 – Horizen Supernode (Zen 42 & Zen 500)

Horizen is a privacy-centric cryptocurrency and a cutting-edge technology platform. The purpose of supernodes on the Horizen network is to implement sidechain capabilities. Moreover, they provide foundational support for applications drawing from the network. The two supernodes run on different software and consist of different specifications.

Requirement for 42: 42 ZEN

42 ZEN Price for 42: $11 ($462 total)

$11 ($462 total) Nodes for 42: 19,832

19,832 ROI for 42: 31.61%

Requirement for 500: 500 ZEN

500 ZEN Price for 500: $11 ($5500 total)

$11 ($5500 total) Nodes for 500: 3,032

3,032 Listed ROI for 500: 17.37%

7 – Blocknet

This platform aspires to essentially be the Internet of blockchains. It hopes to construct interoperability between differing blockchains through a second layer of infrastructure. The second layer Blocknet protocol will create better connections, communication, and interactions between digital currencies. Developers believe that this will lead to a stronger sector.

Requirement: 5,000 BLOCK

5,000 BLOCK Price: $3.05 ($15250 total)

$3.05 ($15250 total) Nodes: 496

496 Listed ROI: 14.71%

8 – Blacer Coin

The point of this project is to create a digital currency for professional gamers. Its design assists professional gamers who compete against each other for observers. Avenues like Youtube and Twitch exist for similar purposes, but Blacer Coin aims to inject blockchain capabilities into the space.

Requirement: 5,000 BLCR

5,000 BLCR Price: $0.09 ($450 total)

$0.09 ($450 total) Nodes: 135

135 Listed ROI: 1,029.85%

9 – SafeInsure

A platform combining blockchain technology with insurance. It permits users to access a decentralized marketplace specifically for insurance. SafeInsure aims to give the power back to the public. The transparency that the blockchain provides is what ultimately backs the system.

Requirement: 1,000 SINS

1,000 SINS Price: $6.34 ($6340 total)

$6.34 ($6340 total) Nodes: 1,553

1,553 Listed ROI: 254.59%

Conclusion

There are many other platforms to check out, but those listed here are among the most highly recommended.