A masternode is a type of server within a blockchain network that facilitates specific functions beyond basic transaction validation. These nodes maintain a complete copy of the blockchain and support the network by performing various essential tasks, such as enabling instant transactions and enhancing privacy features.To operate a masternode, an individual typically needs to hold a significant amount of the cryptocurrency associated with that network. This investment acts as collateral and ensures that the operator has a vested interest in the network’s health and security.In return for their contribution, masternode operators often receive rewards in the form of cryptocurrency. These rewards are typically distributed proportionally to the amount staked and the uptime of the masternode. Masternodes contribute to the overall decentralization and stability of the network, making them a crucial component in many blockchain ecosystems. Their role helps enhance functionality, secure transactions, and ultimately support the network’s growth.