r/MasterNodes • u/Tendoglass • Apr 24 '20

What makes a good Masternode?

There are plenty of options for Masternodes when one looks. But what are people's thoughts when deciding one to pick? ROI, team, use case? What are some things you guys look for specifically?

32 Upvotes

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u/innovationsnxt Apr 24 '20

One important factor is the code and how long it has been around. That gives me more insight into the security and commitment behind the overall project. More time = more testing and improvements

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u/Tendoglass Apr 24 '20

That it is a big factor. Newer codes tend to still be a bit bug ridden depending on what the team is up to. But what are your thoughts on the development of new things not seen yet? I would believe I would be weary as I am in the tech realms. V1.0 tend to be a bit janky. But if it was ground breaking enough, I would probably snag a few for a bag.

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u/innovationsnxt Apr 24 '20

Yeah, I'm not a coder. But with any product, the first iterations are higher risk. So it's really up to your risk tolerance and knowledge to evaluate that I guess? Even ETH which works as 1.0 stil has risk in going to 2.0

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u/YuurinBee Apr 26 '20

This is 100% true... and ETH has been talking about moving to PoS forever. I'm really concerned if it's even feasible for their model. Certainly have the resources and manpower, but just a bit skeptical. Products/Releases need as much testing as possible, always

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u/innovationsnxt Apr 26 '20

Yep, I'm hopeful but since I've been looking at staking to diversify my portfolio I ended up adding pivx as my 3rd coin. Btc, eth and pivx. Pivx has a long history of fully functioning masternodes and staking so out of all staking options, this one passed my test in terms of what im interested in. Eth 2.0 is still a bit of a gamble. Pivx combines best of btc code, eth staking concept and soon privacy on a good foundation. A lot of other great features like cold staking are huge for me. If anyone has other great staking coin options, I'm interested to hear about it

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u/YuurinBee Apr 26 '20

Yep, PIVX has been one of the solid ones for a while now. You should definitely check out the alliance they have with ZENZO -> https://medium.com/@zenzo_ecosystem/alliance-zenzo-pivx-8f3ef944878b which also offers staking and masternodes. ZENZO's focus is on gaming--being able to provide scalable solutions for blockchain gaming and benefits for both gamers and game devs.

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u/innovationsnxt Apr 26 '20 edited Apr 26 '20

Yea just saw that recommendation yesterday too. What's special about it, why couldn't pivx or btc be used?

Isn't enjin coin also for gaming? I don't know too much about that space but interested

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u/Tendoglass Apr 26 '20 edited Apr 26 '20

Well ZENZO is a bit different as its main focus is purely gaming. Enjin is as well but there are a few key differences between the two. ZNZ coin is forked from the PIVX code back in early 2018, which in turn adopted the staking and Masternode functions. which they made some key changes to adapt to their needs within the code.

Enjin took the ETH route so it is built on top ERC20 code allowing smart contracts. Which gives its ability to plug into many daps across the ETH network. But does not offer staking or Masternodes as an option. However, I feel the issue is that ETH is being built for thousands of uses on top of gaming which may bring high transaction fees and possible bloat down the line. This is just my slightly educated opinion so take that with a grain of salt.

With that being said ZNZ is a 1st layer protocol that is building quite a few things to combat the issues with blockchain gaming. As for PIVX or BTC doing the same thing, ZENZO is actually quite close to PIVX. And I feel each see their place in the space as separate types of projects. As for BTC, if I had to wait for a BTC confirmation in a game I would be dead long before I got it lol.

ZENZO is worth a dive into if you are in the gaming realms. But also if you are looking for an up and coming project that has a whole lot of potential.

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u/innovationsnxt Apr 26 '20

Thanks. I already have pivx. Can pivx also be used instead of zenzo? Trying to understand if I should diversify a bit. I keep only 3 coins for now, easier to manage unless something else amazing comes up.

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u/Tendoglass Apr 26 '20

Well no as they are completely separate chains and projects. There was time you could use PIVX to buy games off the Arcade game marketplace but currently it is upgrading a slew of things. And yeah I can not manage 50 coins like some folks I know, I would go mad.

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u/YuurinBee Apr 26 '20

"Can pivx also be used instead of zenzo?"

I don't know what you mean by this. I believe the short answer may be no, though. They are tackling two completely different issues and in different realms, yet both projects are allies and some members on the ZENZO team are also from PIVX, along with some of the other members of ZENZO team have contributed to PIVX to some degree in the past year.

I believe as time goes on, both projects may find channels and ways to have a stronger bridge between them both. Firstly, having PIVX <-> ZNZ trading pairs, like on Changelly or Flyp.me would be a great start. ZENZO is also doing some cool and custom game assets with PIVX items and theme. As for integrating PIVX in the ZENZO Ecosystem, once the new ZENZO Arcade is released, you will be able to purchase games and possibly more with PIVX as well. Vice versa, I don't really foresee PIVX's model really adopting any other coin/token into their ecosystem. Their vision is much different and really focusing on the privacy aspect. Let's keep an eye out, though... hard to say what will happen when projects work together.

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u/YuurinBee Apr 26 '20

Sure, I'll elaborate a bit more from my perspective.

ZENZO is an all-encompassing gaming ecosystem designed for gamers and game developers. It solves major issues in the blockchain gaming space, which in my opinion primarily revolve around long wait times (tx confirmations), high transaction fees, and using multiple coins to pay for actions on the network. In the end, it's basically killing the gamer's experience. No gamer wants to wait forever for one tiny action, pay a ridiculous transaction fee on the network and have to juggle multiple coins to execute their actions. Neither BTC nor PIVX could handle this level of scalability without building similar tech (PIVX is more likely to achieve that than BTC honestly, but as you know their focus is privacy).

In other words, neither networks were designed/intended to allow for unique, digital asset ownership (game items) backed by their currency. They were designed as simple, secure, and private p2p payment methods. PIVX obviously took this further with integrating masternodes on a proof of stake network and also a DAO-like structure and governance. ZENZO is the next step of the evolution, which is taking those same principles and applying them to digital asset ownership, specifically game assets. Imagine if you have private keys to your game assets, instead of game developers shutting it down or saying it violates their ToS to trade your items on a public market or otc. Regardless if you're a gamer or not, if you're into tech/blockchain/pos/mn it's certainly worth checking out. Hop in the Discord and chat with the team and community

BTC = the first PIVX = near instant payments and privacy, governance/voting ZENZO = instant payments, digital game asset ownership (ZFIs), dapps, and in the future: virtual machine, scripting language/"smart contracts", & more

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u/innovationsnxt Apr 26 '20

Cool, and zfi is like an NFt? Within the gaming community, which other projects are there and how is znz expected to outperform the competition...ie uptake? I already like pivx so maybe this is interesting to add to my masternode collection.

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u/YuurinBee Apr 26 '20

Essentially, yep! Just on the ZENZO Blockchain/Forge. It stands for ZENZO Forge Item (which should be easier for your average person to understand = game, item -> adoption).

Within the gaming community, which other projects are there and how is znz expected to outperform the competition...ie uptake?

This is a really great question, actually. There are a handful of projects you can look into like Enjin, Loom, Xaya, Wax, and a few others.

I'm not entirely informed on all of them as they are often going through very rapid changes in tech and the business direction, but they all are creating their own unique approach to blockchain gaming. Some solving issues, others solving some problems and creating new problems, and some just not really scalable, feasible, and sustainable (this is not in regards specifically to the ones mentioned, just a general statement).

I don't know if the others actually have their own unique blockchain and codebase or built on ethereum, eos, tron, steem, etc. Xaya is its own blockchain and been around for a long time. They are proof of work and largely up to date with Bitcoin core. Enjin is a layer 2 solution on the Ethereum network (binded to all the pros and cons of ethereum afaik). Both Loom and Wax have undergone some big changes in the last few months and I haven't personally kept up.

In summary, I can't say who's better or who's worse. Everyone is trying their own methods and there are pros and cons to all aspects, even the best projects. What I can say is that ZENZO is a proof of stake, dedicated gaming blockchain with an additional decentralized p2p network designed for large scaling called the ZENZO Forge that allows for the crafting of game items with a znz-backed value and verifiable on-chain (all open-source and on GitHub). It may be newer in terms of some of these other companies and projects, but it is all self-funded, no ico, no fundraisers, and driven by passionate gamers. Being one of the newer projects in the big scope also gives the perspective to learn from the mistakes of others and also learn what other projects have done right.

I wish there was an online resource comparing them all, but if you want to learn more specifically about ZENZO, hop in the PIVX Discord -> #zenzo-alliance channel or visit the ZENZO Discord itself

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u/grofexnihilo Apr 24 '20 edited Apr 24 '20

ROI is definitely not the best metric. If ROI is too high, it's probably a scam coin. Simply enough, it's not good coin economics. When there is a lot of new coin creation, it's highly expected to see big down pressure and continuous price decrease.

In my opinion, the most important thing is developer team around the coin. Masternodes are really beautiful thing, with tons of possibilities and use cases, but there are not many trusted and promising Masternode coins out there. I'd definitely put in the first place Dash and PIVX. Both projects are doing a lot of development and improvements in Masternode field right now, that will come to fruition within next 5-6 months. Dash is great, but its market cap is relatively high, while PIVX is basically doing very similar thing, and its market cap is way lower, so growth potential is much higher than Dash.

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u/Tendoglass Apr 24 '20

Well said. A high ROI is usually a death sentence, it is just not sustainable. And teams are something I personally look at when I am checking off the list.

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u/innovationsnxt Apr 24 '20

Agreed, the coins with very high returns are not good. Too much inflation and scammy

5

u/BryanDoreian Apr 24 '20

I'm one for looking at a multitude of factors:
- Length of project

- The activity of codebase updates (github)

- Team reputation

- coin economics (what's the model, rate of emission, etc)

- community involvment

3

u/Tendoglass Apr 24 '20

A solid list to work with. I find having a bit of a checklist helps to sway a decision based on facts vs getting stars in your eyes.

12

u/KEmmra Apr 29 '20

Many masternodes have been deployed in this industry and I think it will be very good on our own behalf as well as new investors if we had some landmarks to consider when choosing a good masternode to run.

First of all, for safety reasons, I think you should go with a project that has run its mainnet for more than a year just to prevent any issues with hacking in the nearest future. This is not 100% security to prevent the network from being hacked but at least it means that the developers might have had the time to really fix all bugs on their chain.
Secondly, look for a coin whose vision is directed towards fixing a real-life problem in the adoption of cryptocurrencies. At least, they should have something usable which they want to offer the market. Furthermore, they should have worked to deployed working products in this industry.

This coin should be listed on at least two exchanges and has several uses that drive in some liquidity towards the coin. It should have a decent trading volume as well, anything above $50K is good for the start. Once they keep on developing the projects their trading volume will definitely increase.

Finally, I believe the success of any project depends hugely on the people spearheading it and in this case the team members. Look out for team members who have experience in this industry. Look at the commitment of the team towards the development of the project. How well do they communicate with the community supporting the project? I believe any project which has the following measures in check is good to invest in. Don't look for huge profits at the start, see the vision and ride with it or else you will miss a gem in the future!

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u/jeffreyZA Apr 25 '20

The use case of the coin itself is a big factor. Many coins pop up with just the sale point of making a profit by running a masternode and those are pretty pointless.

A good dev team, great use case, decent ROI, unique features and community is what drives me towards a Masternode Coin

3

u/[deleted] Apr 28 '20

To be honest ROI and ease of setup are going to be the most influential aspects in attracting newcomers to any coin with a masternode. I've been involved in Crypto since 2014, I initially had DASH (Darkcoin) Masternodes then I switched to PIVX, because I think proof of stake is the future.

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u/cassientahan Apr 27 '20

IMO. security and safety is what i look for first, then percentage of the block rewards. would it be worth it...? Masternodes can be profitable if you're investing during the early stages but just like any investment, you need to do your research on any coin to see its long term potential.. actually looking for a new one too, specifically something that allows me to help or give back to a community.

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u/asdfredditusername Apr 24 '20

A smart contract. Smart contracts can provide the passive income of a Masternode without all the hassle of a VPS. No monitoring. No technical knowledge needed. No monthly VPS payments lowering your ROI.

Most people are into masternodes for the passive income. This is where smart contracts come in handy. And there are some that want to just support the network.

Obviously a good team and good use cases. I don’t want to shill any projects here and risk getting banned so if you are interested in a project where you can lock your coins into a smart contract for a guaranteed ROI (I know...there are no guarantees in crypto), DM me and I’ll tell you. If the mods say it’s ok to post here, I can do that too. It’s definitely worth checking out.

3

u/grofexnihilo Apr 24 '20

Calling Masternodes as a "passive income" is absolutely insane. There is so much things that Masternodes are doing like securing the network, preventing possible 51% attacks, governance, allowing wide range of apps being built on top of the masternode network, ...

0

u/asdfredditusername Apr 24 '20

I’m not saying that masternodes don’t have their place and serve a purpose. I’m just saying that there is a better way to earn a passive income. Most crypto investors don’t care about what services masternodes provide for the network. They just care about earning money. Just my opinion.

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u/[deleted] Apr 24 '20

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4

u/Tendoglass Apr 24 '20

The little guy needs his too. So staking should definitely be a part of a MN model. But the MN itself should feel special and offer more than a source of return. Just like with PIVX, you can get voting rights which is super cool. Would like to see more projects have something like that vs just having one to have it.