In an exciting turn of events the Dash network has recorded an all time high of 4000+ Masternodes. The 2nd tier network is an innovation first implemented by the digital currency and is the backbone of the annonymous coin, making the privacy and instant feature of transactions possible.
This development makes the Dash network one of the strongest cryptocurrencies by node count and further proves the potential for Digital Cash. Important roles such as carrying out the anonymization phase of the PrivateSend protocol, validating transactions almost instantly and preventing double spend attempts, alongside the role played in the Decentralized Governance By Blockchain is what makes the1 masternode network an important component of the entire Dash network.
Unlike the current situation facing the Bitcoin network which has seen a continuous decline in node count the Dash network keeps seeing an exact opposite in terms of node growth which raises the question about incentives structure adopted by Dash for running nodes and if it could be the cure to Bitcoins predicament.
Dash masternode operators are awarded 45% of each mined block and currently yields a yearly return on investment of about 10%. Apart from the monetary incentive the masternode network is given the responsibility to partake in the development of the project through the budget system which funds all development activities. When asked how incentives have contributed to Dash’s masternode increase Slawek of Masternode Service Provider (MSP) Splawik’s Masternode Shares and Hosting Service identified that investors and community members see incentivized nodes as a high ROI investment compared to other kinds of investment in the cryptocurrency space.
He said:
“The increasing Dash masternode number is still growing as people see the incentive in creating them, actually ~10% ROI is still high revenue in comparison to other kinds of investment. Another reason is the advantage Dash has over other cryptos and great possibilities in dash development process, also the 7% lowering of the block reward each year and greater interest people have in dash creates a fear of missing out thus causing the masternode count to increase. The future of the project is very bright and people want to take part in something which is alive and has very high possibilities to WIN.”
He also described it as a way of community involvement that yields income:
“Many people simply want to partecipate, others want to become dash community members by setting up their own or shared masternode to gain some interest by supporting the project and their own investment.”
This development shows the belief and trust investors have in the cryptocurrency as a true digital medium of exchange, it also strengthens the 10 months old governance system of the coin and provides a firm foundation for the Dash Evolution project (a decentralized paypal like system).
Though very exciting this may be just the beginning of what is yet to come. The current masternode figures could skyrocket upon the popularity of the shared masternode system which will evolve into a decentralized system more like an interest bearing cryptocurrency account in the next protocol update.
Written by Elisha | Dash Masternode Counts Soar: 4000 and Beyond