Top 5 leading masternode projects in 2019
By Rafał - 2019-07-21
Dash was originally launched in 2014 and created by Duffield by duplicating the Bitcoin code and was originally named Xcoin. It was later rebranded to Darkcoin and again rebranded to Dash in 2015. Dash is a decentralised autonomous organisation whose native spending currency offers privacy and speed features that are currently superior to Bitcoin and the name refers to “Digital Cash”. Dash is designed to have a total supply of 18 million coins. Dash is designed to have a total supply of 18 million coins. Dash has a variable block reward which decreases at a 7.1 % rate each year. The average block mining time is 2.5 minutes on the Dash blockchain, which makes it four times faster than Bitcoin. The Dash currency is based on x11 Algorithm and PoW. This algorithm, based on eleven of the most secure cryptographic techniques known at the time, was intended to reduce power consumption and ensure the fairest possible distribution of Dash during the early years of the network. Unlike Bitcoin, which relies on a single algorithm, X11 is also designed to provide protection against any future weaknesses discovered in one or more of the hash function.
Instant Send: Allows you to send your transactions almost instantly (within 1.5 seconds), without being spent twice. They are accompanied by higher transaction fees charged by the Masternodes when prioritizing these transactions. Instant Send also solves the issue with double-spending.
Private Send: An optional feature that allows you to send your coins anonymously by mixing your transaction with several other transactions, effectively making a transaction to become untraceable. There is a limit on how much you can send this way, with a cap of 1000 units per Private Send transaction
Dark Gravity Wave: Dark Gravity Wave is a difficulty-adjusting algorithm which adjusts the difficulty level of every block based on statistical data of previously found block
Economic: Low transaction fees: Currently, fees to process this digital currency are much lower than Bitcoin.
Decentralized Governance: Dash has solved the problem related to governance and funding by introducing a decentralized platform. The Decentralized Governance by Blockchain allows each masternode owner to cast a vote once (yes/no/abstain) for any proposal
Dash Core v0.14 was recently introduced in early 2019 and represents a major milestone for the Dash Core protocol. This release includes the following features:
- Long Living Masternode Quorums (“LLMQs”), which will increase scalability through improved consensus and expand potential use cases of the network
- LLMQ-based ChainLocks, which leverage LLMQs to improve network security by mitigating 51% mining attacks
- LLMQ-based InstantSend, using LLMQs to reduce the messages propagated on the network for InstantSend transactions, which increases the scalability of InstantSend on the network
The implementation of ChainLocks in 2018 was a big step for the Dash Currency. ChainLocks was implemented to protect the Dash network against 51% mining attacks and avoid double spending of the coins. It ensures that the chain reorganisation becomes theoretically impossible.
Furthermore, in 2018 , the Dash Currency reached a bigger adoption rate with the Venezuela’s problems. In fact, Currently more than 1800 merchants in Venezuela are accepting DASH as a form of payment and the number is still growing.
For the upcoming year 2019, the Dash team is actively working to release the new DashCore v1.0 and DashPay Wallet MVP with some unique features:
- Username based payments
- Decentralized API (DAPI)
- Decentralized Storage (Drive)
- Development libraries and SDKs
Masternode and Dash Market
In Dash, a second-tier network of masternodes exists alongside its first-tier network of Proof of Work (PoW) to achieve distributed consensus on the blockchain. Masternodes power features such as PrivateSend, InstantSend, governance and treasury system. Users are rewarded for running masternodes. The collateral amount to host a Dash masternode is 1000 DASH. Masternode owners are paid a percentage of the block reward for their efforts and up-time on a daily basis.
Current Annual ROI: 6,4%
PIVX (Private Instant Verified Transaction) is an advanced cryptocurrency focused on privacy and security for digital cash. As a community-led project that forked from the Dash blockchain, it uses the Zerocoin protocol to anonymize transactions through its onchain Zerocoin Decentralized Exchanged (zDEX) for untraceable transactions. This name is an acronym, which stands for Private Instant Verified Transaction. New coins are minted through a Proof-of-Stake (PoS) and Zerocoin-Proof-of-Stake (ZPoS) hybrid consensus algorithm. This enables pseudonymous and anonymous transactions, also known as extreme privacy.
PIVX was launched January 31, 2016 by Dash community members who wanted to shift the reward system while focusing development on faster transactions times, privacy, and security. It’s focused on being vanilla digital cash that enables fast value transfers. It’s more anonymous than other privacy coins like Zcash because the Zerocoin protocol is actually a custom version that also has a mechanism to auto-mint anonymous coins. When PIVX was originally created and forked from DASH in February 2016, it was originally called Darknet (DNET). But unlike DASH, it is a proof of stake cryptocurrency with an improved POS mechanism. After the fork, with more community involvement, it was rebranded in January 2017 to PIVX in order to reflect its underpinning vision, mission, and ideal.
CoinJoin: CoinJoin is equivalent to the PrivateSend feature implemented by Dash cryptocurrency.. It uses coin mixing which involves the obscuring of a transaction by the dividing of funds so that no one can trace the transaction back to source. PIVX has improved the CoinJoin further by implementing Zerocoin protocol to it.
SwiftTX: It allows transactions to instantaneously be validated and confirmed before added to the blockchain. This allows for extremely fast transactions, instead of waiting few minutes for a full confirmation. It utilizes masternodes by quorum consensus to provide near instantaneous transactions. With that method , transaction times are often 1 second or less.
Proof Of Stake and ZeroCoin: PIVX introduced its own custom Zerocoin Protocol, zPIV in end 2017 . It provides an unprecedent privacy and makes users balance and transactions completely untraceable. zPOS maintains anonymity even while earning staking rewards. For information ,Zerocoin is a privacy protocol proposed in 2013 and was designed as an extension to the Bitcoin protocol that would improve Bitcoin transactions' anonymity by having coin-mixing capabilities natively built into the protocol
PIVX Own DEX: zDEX is the world’s first private in-wallet decentralized exchange which makes use of zerocoin that utilizes a proof of stake cryptocurrency. AML, KYC or any ID-verification is not at all required for using this exchange. zDEX also runs on the Masternode tier of the PIVX network.
Economic advantage: Low transaction fees (less than 1 cent in most cases) because of PoS algorithm efficiency, meaning PIVX is ideal for microtransactions as well .
Since 2018 , The PIVX team works actively to improve the wallet functionalities and possibilities. With the PIVX Core wallet V3+ , a lot of changes have been made available for the community for the best user experience. Some features and changes included are:
- zPIV Staking (zPoS)
- Deterministic zPIV Seed Keys
- Updated zPIV Minting
- zPIV Search
- Wallet GUI Overhaul
- Return change to sender when minting zPIV
- Disable Automint Feature / Set Amount
- External Storage Backup
For the current year, the PIVX team and community is working hard to bring a lot of new improvements to the entire PIVX ecosystem. These improvements are oriented into 3 main categories: Core Wallet, Light Node Wallets, Community Improvements.
- A new complete redesign of the core wallet has started and it’s close to being finished, and will feature an astonishing UX/UI design on top of the QT framework for the very first time in crypto.
The SPMT: (Secure Pivx Masternode Tool) is a software to securely manage multiple PIVX masternodes while keeping the collateral safely stored on a hardware wallet such as the Ledger Nano S. The integration with Trezor is planned during this year.
- Dandelion Protocol is under construction and makes sender’s IP addresses virtually untraceable.
- BIP44 and BIP39 support planned to bring a better security toward the core wallet.
- Bulletproofs implementation can shrink the size of the cryptographic proof to a fraction of their current size.
Light Nodes and Wallets:
- Multi-sig for Mobile & Desktop Wallets will allow a digital signature that makes it possible for two or more users to sign a transaction as a group. Multi-sig support is available on the desktop wallets and is now being developed for the mobile wallet.
- zPIV Wallet + ZLNP release on Mobile & Desktop Wallets will allow the PIVX Android wallet to mint and spend zPIV (zerocoin) directly
- Tango (Alpha) release: an off-chain PIVX voting site, including the ability to sign votes cryptographically with ‘signmessage’ wallet command. Both verified and unverified voting will be possible.
- PIVX Incubator : A Business Development Team, to build income producing assets for PIVX community
- Fiat Gateways: Buy / Sell PIVX for £ / $ / € easier. PIVX will establish more FIAT/CC/Bank transfer gateways, preferably Visa/Mastercard directly to PIVX. This will include P2P solutions like Localcoinswap
Masternode and PIVX Market
Staking of 10,000 PIVX as collateral is essential to host the PIVX Masternode. Masternodes provide special features to the PIVX network such as enhanced privacy, self-funding, true governance, decentralized budgeting system, immutable proposal and voting system etc. Masternode owners receive block rewards for network uptime and hosting and act as a passive income source. The rewards to Masternode holders are slightly higher than what is received by the wallet holders who stake PIVX for rewards. These rewards are variable and are determined by a see-saw algorithm.
Current Annual ROI: 10,44%
Zcoin (XZC) is a decentralized cryptocurrency based on open-source code, which makes use of zero-knowledge cryptographic proofs to allow its users to transact anonymously. The Zerocoin protocol was originally intended to be an extension of Bitcoin, but it was later modified by Vertcoin (VTC) Founder Poramin Insom which resulted in the creation of Zcoin.
ZeroCoin Protocol: Zcoin has implemented Zerocoin Protocol to its network which is also termed as the ‘Privacy Enhancing Technology’. Zerocoin is a privacy protocol which was proposed add cryptographic anonymity to its transactions.
Merkle Tree Proof (MTP) algorithm: MTP allows even the home miners (miners with low computing power) anywhere in the world to earn some Zcoin through mining. This solution ensures a better and fair distribution of Zcoin , reducing the risks of 51% attacks and improving the underlying decentralization.
Dandelion Deployment (2018): Privacy Enhancing Routing : Dandelion is a new transaction broadcasting mechanism that routes transactions in such a way that makes it hard for an eavesdropper to find the origin of the transaction. This reduces the chance of users having their IP address tied to a transaction even if they aren’t using Tor.
MTP Release on Mainnet with Block Time Halved: MTP, the next gen proof of work algorithm, was launched on Mainnet in end 2018 and Zcoin’s block time was halved to 5 minutes for a faster response time.
Whitepaper for Next-Gen Privacy Protocol: Release of a whitepaper at lelantus.io detailing Zcoin’s next-gen privacy protocol with new zero-knowledge proof schemes.
Sigma Protocol: Sigma (Σ) Protocol completely removes the need for a trusted setup, which is a major milestone for any privacy coin
User Interface Overhaul (New wallet): Zcoin is moving away from the old QT GUI that was used in Bitcoin to use a totally new GUI based on Vue.js to allow a more flexible design and improvements in the long term.
RAP: Receiver Address Privacy: RAP (BIP47) will allow users to share one static public address that will route transactions to brand new addresses to preserve privacy even on light wallets.
Masternode and ZCOIN Market
Hosting a Zcoin Masternode (Znode) requires staking of a minimum collateral amount of 1000 XZC. Zcoin Masternode network enables unique functions and adds another layer of privacy and anonymity to its blockchain. Znode owners earn 30% of the block reward (for hosting a reliable and powerful network that helps support the network.
Current Annual ROI: 15,4%
Energi is a self-funding cryptocurrency that has a purpose to reach the masses. The value proposition of Energi is that they will provide a very strong, self-funding treasury system which will eventually develop into a smart contract platform later on. Energi will provide a small allocation to mining rewards and will take a bulk of the coin issuance and give it the treasury and masternodes. Energi will also allocate 10% on-going reward to leadership of the Energi Backbone, which is significantly less compared to today’s ICOs’ rewarding their founders between 20–50% of the tokens distributed. Another trait that sets Energi apart from ICOs is they give an on-going 10% allocation through each block reward, rather than rewarding the founders up-front. Energi is forked from Dash and was started in summer 2017 by ‘Tommy World Power’.
Technically advanced: Utilize an ASIC-resistant Ethereum hash algorithm and support private and instant send on the NRG wallet offering wallet support with automatic backups. The masternode are also a huge part of the NRG network acting as a passive income solution.
Community Governance: Use proposals and masternode voting for on-chain decentralized governance. This governance model increases the stability of the platform, maximizes its scalability and paves the way to global adoption by encouraging people to participate in the decision making.
Economic: No ICO with treasury dedicated to the NRG development and marketing. Energi treasury (a Large Self-Funding Treasury) has one of the highest percentage allocations in the cryptocurrency space. 40% of the 1 Million NRG released every month i.e. four hundred thousand NRG goes to the Energi treasury. This large self-funding treasury ensures the longevity of the project in terms of development, technology and community
Proof-of-Stake: As of February 26th, 2019, at approximately 17:00 UTC , the exact block height the transition occurred was at block 437600. Energi (NRG) was fully transitioned to a Proof-of-Stake (PoS) consensus model. NRG holders can now easily stake their coins onto the main net and earn rewards!
Innovative Marketing: Running since early 2017, the NRG team has taken a less traditional route of having no ICO and doing multiple rounds of “earndrops.” These are airdrops that require some basic action to earn the cryptocurrency and acted as a good source of marketing for the project.
Energi X: Energi Core begins work on Energi X (a 0-fee Futures Exchange to rival Bitmex), with its primary trading pair being NRG. Energi X is a major endeavor and will be one of Energi's major focuses over the coming years. There is no firm estimated release date yet, but launch is tentatively planned for Q3 2020.
Energi 3.0 Public testing and release: Featuring major additions to Energi's capabilities and abilities to be useful in real-world context. This is the most significant update since launch to come in the close future. ( Planned for last quarter 2019)
Masternode and NRG Market
To host an Energi Masternode, a collateral amount of 10,000 NRG is necessary. Masternodes provide unique features to the Energi Blockchain network such as private send, instant send, self-governance, self-funding, Equitability etc and increase the functionality and scalability of the platform. 40% of the NRG generated every month (which is around four hundred thousand NRG) is distributed among the Masternode holders as incentives for their network uptime and delivered work.
Current Annual ROI: 82,98%
Loki is a fork of Monero, one of the most secure and most anonymous coins in the market now. Loki aims to create a completely-private network where users can trade and communicate. Loki combines a private transaction network based on Monero with economically incentivised service nodes to create a trustless quorum based networking protocol. This protocol allows anyone to route small packets of data in an anonymous and decentralised way. Loki makes use of the Invisible Internet protocol (I2P) and onion routing protocol (Tor) which allows users to form paths through a distributed network and makes the tracing of the transactions to the origin much more difficult by using multiple nodes to obfuscate the destination. The front end applications that use this packet routing system are private-by-design, and are known as Service Node Apps “SNApps”; the first of which is the Loki Messenger , a decentralised, anonymous and private messaging service.
Privacy: Loki is built from Monero, and adopts a number of Monero’s key privacy features including ring signatures, ring confidential transactions, and stealth addresses. Together these methods ensure users activity and personal information is kept away from prying eyes.
Untraceability and security: Loki allows users to connect to one another while hiding any trail or trace of the connection. This provides users with the freedom and security to connect and communicate wherever they are, and whenever they want, without their data being captured.
Open-source: Loki is an open-source project that anyone can contribute to. Using the combined knowledge of expert individuals from around the world who share a collective vision of freedom and security, Loki will be a powerful tool that will continue to evolve to meet the needs of the community in the long run
Since its launch , the LOKI team has worked toward the usability and adoption of Loki Core and Loki Messenger. On june 5 2019 , the LOKI took a huge step forward in that direction and released the Loki hardfork, Hefty Heimdall.This main upgrade included several major changes to the ecosystem and is still ongoing for a few months.
- Service Node Checkpointing
- Loki Storage Server (Stores Loki Messenger messages on Service Nodes)
- Internode testing (Blockchain and message storage)
- Loki Messenger alpha release
The testnet binaries were on June 26 and a mandatory upgrade period started on July 10. Finally , the mainnet Hefty Heimdall hardfork will happen on July 24, with Checkpointing being enabled but not yet enforced.
In the upcoming months, the team plans to release few key features for the network:
Loki Messenger on Android
Lokinet Onion Key Rotation
Lokinet RC Expiration
Lokinet Android Client
Loki Name System
Hardware Wallet Integration
Enforced Service Node Testing
In-Browser Loki Wallet
LokiNet iOS Client and Exit Functionnality
Masternode and LOKI Market
Loki refers to Masternodes as ‘Service Nodes’. To operate (set up) a Service Node, an operator time-locks a significant amount of Loki and provides a minimum level of bandwidth and storage to the network and in exchanges is rewarded with a portion of the block reward from each block. 45% block reward goes to the miner, 50% goes to service node operator and 5% goes towards governance operations