Masternode is defined as a governing hub in some cryptocurrency networks. It requires an initial collateral of tokens (or a “stake”) to operate.
A node is defined as any computing device (computer, phone, etc.) that is maintaining a network. Cryptocurrencies are supported by a network of computers each keeping a digital record of the data known as a blockchain. A computer, a phone, or any other computing device that can receive, transmit, and/or contribute to the blockchain is a node.
A masternode is more than just a node. It has a managing role and special jobs that regular nodes don’t have.
- A masternode’s managing role is to vote on proposals to improve the Dash system. Every masternode gets one vote.
- A masternode’s special jobs include creating instant transactions, known as “InstantSend”, and private transactions that hide the fact that you’ve sent money, known as “PrivateSend”.
Anyone can get a masternode, they just need enough money to get 1,000 Dash.