Gin Masternodes White paper Summary including definitions of terms and use case for the coin
The white paper is longer then this summary and the wording is quite different. I have attempted to delete the technical terms and explain the concepts in everyday language. However in some instances I chose to define specific technical terms you need to understand the very unique nature of the Gincoin master node. Additionally, there are instances where the author of the white paper defined something very well or explained something very well, so I have used their language and placed it in quotes. In other places I have duplicated lists of facts, but placed them in quotations to be transparent and credit the source. Finally, the source document for this article is the Gincoin white paper. But other references listed below were also consulted to improve my understanding of the Gincoin masternode, but no quotes were taken from those sources.
Masternodes are a type of investment that is often compared to a savings account or a certificate of deposit, in that you put money into and are paid interest. You deposit money in the master node by way of the coins you purchase and place in the master node, then you agree not to withdrawal them for long periods of time. Then you get paid on a scheduled basis, which could be daily, weekly or monthly, which is more. However master nodes are different from a bank certificate of deposit in that a master node is able to perform many functions. I will start this discussion with some brief definitions that will help you understand the rest of the discussion of master nodes.
What is a cryptocurrency?
A cryptocurrency is a virtual or digital type of currency/asset designed to work as a medium of exchange. Cryptocurrencies use cryptography (hence the name) to secure transactions, control the creation of additional units, and verify the transfer of assets. The control mechanisms of cryptocurrencies are decentralized and managed through a block chain (a form of public transaction database) that works as a distributed ledger. The decentralization aspect is what sets them apart the most from most other types of currencies (especially fiat currencies).<
What are Masternodes?
A masternode is a digital construct which functions as a virtual server with a publicly available IP address.< A master node is a computer wallet that keeps the full copy of the block chain ledger of all transactions, which is a real-time copy. Master nodes are members of the specific coin’s transactional network and they must meet specific criterionmeet specific criteria, the most important of which is a specific number of coins locked in a dedicated wallet.
Wallets
Wallets are usually described in terms of being hot or cold. In this circumstance the descriptions don’t refer to the wallet temperature. They refer to relative resistance to theft of the coins or tokens.
Hot wallets
If your coins are stored on an internet website or a computer server, which is connected to the internet, usually 24 hours a day and seven days a week. Americans call this 24-7. This 24 hour and seven day a week connection means someone with certain high level computer software skills can “hack” or break into the online wallets which are online and steal your coins. This is why the wallet is called a “hot wallet”. This makes them easier to steal then a in a “cold wallet”. There have been several well publicized thefts of several millions of dollars worth of coins from some very big exchanges.
Cold wallets
If your coins are stored in a wallet, which is on a computer that’s not always connected to the internet or if your coins are stored on a storage device which is removal from the computer when you are not using the computer, this is called a “cold wallet”. This coins in this “cold wallet” are less vulnerable to being stolen then a hot wallet because they are not connected to the internet.
Savings accounts
Masternodes are often compared to savings accounts because you have to save the cryptocurrency in a wallet and agree not to spend it in return for monetary rewards. Which is similar to a savings account.
Master nodes versus Nodes
Master nodes perform different functions from the block chain nodes which exist in the Bitcoin block chain and other regular nodes. While master nodes keep a real-time copy of the full block chain and relay blocks/transactions, just like a node does on the Bitcoin network. But they also perform other functions as well:
Increase the privacy of transactions
Enable users to instantly send funds to one another
Participate in governance/voting
Some serve the role of a treasury in some coin networks<
The following properties explain why Masternodes are good for Cryptocurrency:
Decentralization
Master nodes to make cryptocurrencies decentralized, so they counterbalance the inherent centralization mining pools introduce.
Master nodes increase network scalability of the network.
Master nodes owners can be allowed to vote on development direction and policy changes like shareholders in a corporation.
Lower energy expense
Master nodes are useful because they ensure a network’s security with much lower costs then proof of work.
Better security
Masternodes owners invest their capitol, so these owners are very interested in keeping the network secure. Some Masternodes like Dash Masternodes monitor the POW network (the miners) and reject blocks the miners produce if they don’t match the current version of the block chain or if they detect reward tampering.
Cryptocurrency market size.
As of March, 2018, the total capitalization of the cryptocurrency market is USD 407,868,000,000 according to Coin Market Cap.
The number of Master node coins
As of March, 2018 the website www.MasterNodes.online estimates that the total net worth of existing Master Nodes was around USD 3,059,849,565.
Gincoin solves two big problems the world and the industry has with master nodes.
First Problem:
- Deploying and running a Masternode requires significant technology know-how:
a. Deep understanding of the block chain
b. Launching & maintaining a server
c. Setting up of master node software
Second Problem:
Setting up a Masternode requires considerable financial efforts (and, as detailed below, trust) The two problems force investors to rely on Shared Masternode groups and schemes, usually lead by a developer willing to do the work in exchange for a share of the Masternode (or its generated rewards). This forces a trustless-system to work in a trust-dependent way, and not few are the cases where ill-intentioned individuals scam investors and keep the collateral for themselves.<
GINcoin platform is a “Trustless”, “Codeless” master node deployment platform.
The overview
GINcoin was built to fix the problems listed above.
It has a “GUI or graphic utility interface” which means there are graphics or pictures which allow you to point and click instead of entering commands into the keyboard to operate the software. Because of this intuitive and easy interface the most difficult thing master node investors have to do is buy the specific number of coins, which is usually 1000-25,000 coins, depending on the particular cryptocurrency. However, Gincoin is working on a solution for that: “shared Master nodes” so investors don’t have to have the full number, they can partner with other investors, so they can reap a percentage of the high rewards reserved for master nodes.
Additionally, GINcoin is a peer-to-peer cryptocurrency that will also support certain features found in DASH master nodes: instant transactions (InstantSend), private transactions (PrivateSend) and Masternodes. Gincoin is based on the Dash template. The beauty of open code sources is that new coins like Gincoin can use the software code of the best coins and benefit from all their improvements.
Masternodes
Like Dash, GINcoin uses a two-tiered network - miners, the first tier, handle creating new blocks, whereas the PrivateSend, InstantSend and Governance functions are handled by the second tier made up of Masternodes.<
Masternodes require 1,000 GIN as collateral to prevent sybil attacks (wherein a peer-to-peer network’s reputation system is compromised by entities with forged identities). The collateral can be spent at any time, but that subsequently eliminates the masternode from the network.<
PrivateSend
PrivateSend is a feature or service, which mixes one person’s coins with another person’s coins before sending them to a wallet, to ensure their anonymity. It is based on CoinJoin, to which it adds multiple modifications. The maximum allowed number of coins for a PrivateSend transaction is 1000 GIN.
InstantSend
This is a master node feature that allows for near-instant transactions.
InstantSend is a feature which solves the double-spending problem, but without the resultant problem of longer confirmation times which is commonly seen in other cryptocurrency like Bitcoin.
Gin coin block chain information
Mining algorhythmn: Neoscrypt
Block time 2 min
Block reward 20 GIN 50% Master Nodes / 50%miners
Masternode collateral 1,000 GIN
Total supply 10.5M GIN (2040)<
The Gincoin platform is a GUI-based master node deployment platform
In other words this means you don’t have to know computer software coding to set up the master node. You just point and click at pictures and follow the very brief instructions. The platform itself is web-based and relies on open source technologies like Node.js, Kubernetes, Linux and Docker. On the Gincoin platform setting up a Master node is simple and straightforward, and instead of taking hours, it can be done in minutes and no coding skills are needed.
Because Gincoin is the only way to pay for the service it has value
The coin itself will derive value from the platform that it maintains.
GIN will be used by our community to cover:
◎ Masternode hosting fees
◎ Masternode setup fees
◎ Shared master node setup fees<
Gincoin platform is beneficial to other coins
GIN helps other master node coins grow faster by enabling investors from all walks of life to create, maintain and invest in all Masternodes regardless of their lack of technical software skills.
These are the achievements of GINcoin development team in 2018:
GINcoin Masternodes
The GIN network is the first implementing our one-click masternode setup technology Feb 2018.
Platform and User Interface
Online graphical UI for creating, managing and monitoring MNs for the different supported coins. Mar 2018<
3rd party Masternodes
Other blockchains with masternode technology will be welcomed on-board
Mar 2018<
Shared Masternode support
Platform support for shared masternodes setup facilitating participation in expensive masternodes (e.g. Dash)
Daily Rollouts
Start of Daily rollouts of new Masternode coins Mar 2018
Gincoin Mission & Vision
GINcoin aims to provide cryptocurrency investors with an easy way of creating and deploying their own master node(s) - regardless of their technical abilities.
Our ultimate goal is to democratize the way master nodes are created and, as an effect, prove crypto is here to stay – by making it more secure and more user-friendly than paper money.<
Contact Information:
◎ contact@gincoin.io
◎ https://discord.gg/RTgVNxR
◎ https://twitter.com/gincoin_crypto<
References:
- Gin coin white paper
- Gin coin website
- Masternodes online website
- Gin Discord
- Gin Twitter page
Photo Credit
I took the photo and modified from Gin website:https://gincoin.io/#exchanges