August 17, 2022

Masternodes vs Nodes (NaaS and DaaS): Major Differences

Masternodes

Masternodes

Masternodes vs Nodes (NaaS and DaaS): Major Differences. Many crypto enthusiasts might be already aware of these 2 terms Masternodes and Nodes. But, it is essential to know the major differences between the 2. While Masternodes help any particular blockchain to be more secure and provide consensus. Nodes, which are the current trends work on pure ponzinomics.

Capital required

First and foremost for any investor or someone who wants to jump right into these 2, initial capital is the key. While Nodes here may start at pretty cheap, Masternodes relatively have a pretty high entry point.

Basic Working 

Masternodes – The basic working and why a Masternodes exists are to Process Transactions, Keep a record of all transactions, Network Security, and Consensus. Anyone who wants to run a Masternode required X amount of coins/tokens to start with. These tokens are staked and the Masternodes require some technical knowledge to proceed with. Apart from these, a good VPS is also a requirement to run a Masternode.

Nodes (NaaS and DaaS) – There isn’t a basic working or a reason why they exist. With these types of Nodes, the reason or purpose can be different. A Node here refers to a completely different game. The basic work for Nodes here is to raise funds from investors. These funds can be either used to invest in (Actual validator nodes, Stable and known Crypto/Non-Crypto Projects, Yield farms, Staking on Pool, etc, Creating a new P2E, etc.). Nodes also have a new or maybe a known concept called NFT mint Nodes. Mint an NFT with X token or a particular coin and hold NFT to node rewards.

Masternodes requirement:

  1. Coins/tokens for the blockchain or project
  2. A good VPS
  3. A fairly good technical knowledge (Not mandatory, 100s of Videos/How to can help you to setup)

Nodes (NaaS and DaaS) requirement:

  1. Initial capital

Masternodes – Buy coins/tokens – Stake them – Use a good VPS – Get rewards – Initial isn’t lost.

Nodes (NaaS and DaaS) – Buy X no of coins to create a node – Initial is burned/depends upon nodes – You get X no of coins daily

The requirements are not the minimum or all covered, there can be different sets depending on the Masternodes/Nodes. Apart from these, a basic knowledge of Crypto, Chains, Tokenomics, Reading and understanding risks, etc. is a must.

Crypto Nodes: Hype or worth to invest?

Longterm Sustainability

Masternodes – While Masternodes can be highly successful and sustainable long term, we have a track record and history. Selecting the right project and understanding the project roadmap and uniqueness is Important. Anyone who is running a Masternodes can either hold the new reward coins or sell them at a later stage for more profitability.

Nodes – Nodes currently are only beneficial for someone who gets in early or max 1-2 days later. There isn’t any data or track record currently to prove, how long they will be here. However, projects are working and sustaining even after 2-3 months and have some solid roadmaps ahead to watch out for.

Pros

Masternodes

  1. Sustainable as compared to Nodes (Anything cab be a RUG)
  2. Supports a blockchain
  3. Your initial investment isn’t locked, you can leave the project anytime

Nodes (NaaS and DaaS)

  1. Lower Entry point (Depends upon the project)
  2. No rental for VPS. Only gas fee for transaction (Can be very cheap, if done at the right time, some chains like MATIC/FTM are super cheap)
  3. Faster ROI (Maybe even 10% a day)
  4. Consistent rewards

Cons:

Masternodes

  1. Higher entry point (High capital required)
  2. VPS monthly rental
  3. High ROI time
  4. Price can drop, resulting in longer ROI

Nodes (NaaS and DaaS)

  1. Initial is locked
  2. Need to wait for ROI as the token keeps on dropping
  3. Most of them don’t have a roadmap or aren’t here for even 6 months to prove their track record. (STRONG is kind of the oldest but is now down drastically)

Some Masternodes and Nodes Projects:

Masternodes:

  1. Flux
  2. DAG
  3. DASH
  4. PIVX

Nodes (NaaS and DaaS)

  1. Strong
  2. Thor
  3. Comb Financial
  4. Vapor nodes

There are many more good ones, these above aren’t Finanical advice or top projects but, known and talked about. However, you can take these example and search for the good ones.

Conclusion:

There isn’t any safe or right way to enter or exit, but a rule of thumb. Always park more than 70-80% of your funds in Safe assets (Bitcoin, Ether, other good projects, Anchor Protocol, Stablecoins). Degen plays or risks bets can be less than 10% of your portfolio, depending upon your risk appetite. But, do keep in mind Masternodes and Mining is some of the safe plays compared to many other investing opportunities.

If you have any questions or if you need any help, do let me know. You can connect with us on Social Media as well. If you are planning to start investing do check out Binance and WazirX. Check our Cryptocurrency tab for more related stories.

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