The concept of a Masternode in a blockchain is simple. It exists as a second layer within the network which performs extra services on top of the base layer (miners). These masternodes are given rewards for their services by the network and can be very profitable to those who own them.
Who owns a masternode?
Anyone can own a masternode by purchasing a predetermined amount of coins required to operate one. These coins will be "locked" inside a wallet while the node is running. If any coins leave the wallet the node will shut down. This also has the effect of stabilizing the price as big sell offs will be mediated since a portion of coins are locked away.
Voting rights
On top of the benefits of gaining rewards to operate a node, owners also have the ability to "vote". Usually a coin treasury will exist (funded by a portion of predetermined inflation) where proposals are submitted offering some form of service to the community. These proposals are then voted on by the masternode owners & those that pass are sent funds by the network.
Skynet
The key takeaway here is no one person is controlling these funds. The protocol is programmed to hold coins, then distribute to passing proposals (any left over are burned resulting in deflation & increasing currency value). Eventually the protocol will have more responsibility than just the treasury...Features will be added giving it the ability to implement & write new code all on its own. Already having access to significant amounts of capital (DASH's treasury is currently over $1.1 Million / month) this would make for an ideal platform for AI to run wild. With no simple way to shut down the network (cryptocurrencies are decentralized) all it would take is one voting round gone bad and we would have a well funded autonomous AI amongst us.
What do you think?