Today, we are interested in masternodes and we are going to talk about the VPS you need to launch a Masternode according to the rules of the art.
As you know, Masternode technology was inaugurated with the Dash cryptocurrency. In fact, these are special nodes on the network that are not just another peer-to-peer connection. In addition to running full nodes and relaying transactions, they provide several other functions to the network.
To run a masternode you need two things at the same time: A certain number of coins that must be "stored" in your wallet. Two, a computer connected to the Internet and running 24 x 7. But, these are the two basic elements so to speak. In fact, there are other small details that come into play, which we will see in this article, rest assured 😉
These are the two essential elements to run a Masternode. Once the masternode is online, it supports the blockchain and will power the network by providing special functions such as: fast transactions, anonymous transactions, voting rights and other decentralized operations.
😎 To contribute to such features, masternodes get rewards for this work done. Similar to how bitcoin miners earn bitcoin rewards for work done on the blockchain.
In a previous article, we explained the difference between staking and masternodes. The functions of masternodes, how they work and how masternode holders are rewarded for providing services to the network were explained.
Now the question is how to actually make a masternode. How to manage wallet staking and how to perform it on a local computer. Likewise, we will see why configuring a masternode requires a VPS?
➡ Here we are not going to explain how to set up a virtual private server and run a masternode. Instead, we'll look at why a VPS with a dedicated IP address is required and why running a masternode directly from your Windows computer simply doesn't work.
First of all, what is a VPS?
VPS is simply the abbreviation of Virtual Private Server. In fact, this is one of the most popular hosting options that you can choose. It's not only known for the world of cryptocurrencies and masternodes, hmm! VPS works with virtualization technology to provide you with dedicated (private) resources on a server.
In practical terms, it is a more secure and stable solution than shared hosting in which you do not have dedicated server space. Plus, it's more affordable and cheaper than renting an entire server.
The requirements for running a masternode:
So, what do you need to run a masternode? Since the invention of Dash, several coins have started implementing this technology, with this system benefiting both the network and its users. Especially since many people get rich daily thanks to masternodes. So, obviously, people are very interested in this particularity of the cryptographic world.
Some of the most popular Masternode enabled cryptocurrencies are Dash, SysCoin, PIVX, Smart Cash, Zcoin, Phore and many more.
Regardless of which coin you choose, to run a masternode you will basically need these following 3 items:
1. Required parts: To host your own masternode, you must first have a specific number of coins as collateral. This requirement also depends on the currency you choose. For example, Dash requires 1 coins, SysCoin requires 000 coins, and PIVX requires 100 coins.
2. The VPS (Virtual Private Server): Your collateral amount must be there 24/24 to secure the network and generate income for you. To keep your node running stably and efficiently at all times, a VPS/server is recommended. Just like the amount of collateral, the resource requirements of the VPS also depend. For most coins, including Dash, the $7 VPS of vultr ou Digital Ocean is enough. Either way, the better the hardware, the better your node will perform.
VPS Specifications:
| Minimum | Recommended die | |
| CPU | 1 Core | 2 Core |
| Memo | 1 GB (2 GB vSwap RAM) | Go 2 |
| Hard disk | 25 GB SSD | 40 GB SSD |
| BANDWIDTH | 1 TB Data transfer | 3 TB Data transfer |
| IP adress | 1 IPv4 | More than 1 if you decide to configure multiple nodes. |
Note: Memory bandwidth and disk space requirements increase as the cryptocurrency network grows.
3. A publicly accessible static IP address: each masternode in the network connects to other nodes and each masternode in the network requires a unique IP address. You will get a permanently allocated IP address when creating the server.
These are the 3 elements that you will absolutely need to have in order to launch a Masternode correctly.
Why PCs are not suitable for Masternodes?
There are several reasons why it is better to run a masternode at home instead of hosting it on VPS. But for the majority of beginners, the main reason for doing it at home is safety. If you are one of those people who are afraid of being hacked, know that masternodes hosted on VPS do not have access to your funds. They are remotely controlled to keep your coins safe. For more information, you can also find out about hot/cold Masternodes.
First, is it really possible to set up a masternode without VPS?
Yes, you can run masternodes from your home computer or with your nanocomputer Raspberry Pi... but this is not recommended.
For what? As we said, Masternode needs a static IP address and must operate 24 hours a day without interruption. Most home computers are connected to a dynamic IP address, and most home broadband connections are not as stable as those in data centers. If the IP address changes or the network connection is interrupted, then your node has to start again and as a result, you then lose all payments. course.
This is one of the main reasons why you should set up and host the masternode on a VPS.
But let's say your local computer has all the requirements to efficiently run a masternode such as:
- high-speed Internet connection with high availability
- a static IP address
- unlimited bandwidth to serve the blockchain and a specification powerful enough to support DDoS (Denial-of-service) attacks.
Now what are the risks?
The risks involved:
By hosting a masternode locally, your computer's IP address is exposed everywhere on the Internet. 🙄 Do you think keeping your online wallet with 1000 Dash coins is really a good idea?
By exposing your network, you not only put your coins at risk, but you risk other personal data that resides in that system. But what happens if you launch your masternode with a VPN (virtual private network)?
Of course, it should be fine!! But have you thought about the electricity costs of using your computer? It will cost you more than the price of VPS, very clearly!
If you want to run a masternode, it is recommended to choose a VPS from a reliable hosting provider.
VPS is the abbreviation of Virtual Private Server. VPS hosting is one of the most popular hosting services that you can choose for your website. It uses virtualization technology to provide you with dedicated (private) resources on a server with multiple users.
It is a safer and more stable solution than shared hosting where you do not have dedicated server space. However, it's smaller and cheaper than renting an entire server.
VPS hosting is usually chosen by website owners who have mid-level traffic that exceeds the limits of shared hosting plans, but still don't need the resources of a dedicated server.
VPS solutions usually offer multiple hosting plans. For example, at Hostinger we have six VPS plans to meet different business needs and allow you to scale your site seamlessly when you need more resources.
If you need a suggestion, choose Digital Ocean ou vultr, this is what most people recommend. You will be sure to have the best operators to launch your masternodes safely.
This is not investment advice. Always do your own research before investing.
