Masternodes are a part of the infrastructure that sustains cryptocurrencies such as Bitcoin and Ethereum. Unlike regular nodes, masternodes do not add new blocks of transactions to the blockchain. Instead, they verify new blocks and perform special roles in governing the blockchain. Masternodes operate on a collateral-based system, meaning that the operators need to own a significant amount of the cryptocurrency to run these masternodes. In exchange for their time and money, masternode operators are rewarded with guaranteed crypto earnings- usually a percentage of their total stake.
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