MARKNetwork Education Part 7:

Difference between Masternodes & CPU/GPU mining (With Pros and Cons)

Short summary of the article:

“Do not get left behind!”

»While GPU Mining renders the Blockchain capability to validate each transaction, Masternodes provide an additional layer of security to the Blockchain. The advantages of Masternode goes beyond this. Let us explore how the GPU Mining and Masternodes differ.«

MARKMining Shared Masternodes as a Service

The promises of decentralization and creation of immutable records lucrated the liberals to the disruptive blockchain platform. It started with the mining of block number 0. Satoshi Nakamoto mined the 0th block of bitcoin on 3rd January 2009 and received a reward of 50 Bitcoins. As per today’s stats, bitcoin mining has broken the glass ceiling. 17 million bitcoins have been mined till date and only 4 million left to mine.


Blockchain has come a long way!


Today it brings everyone an equal opportunity to acquire coins by buying, mining or with a Masternode. If you have been scratching your head over which way to go. This article solves the riddle. 

CPU/GPU Mining

If you have been wondering how a new Bitcoin comes into existence, mining is the age-old answer to it. A lot has been said about CPU/GPU mining over the internet. Simply put forward, when high computational of computers are used to solve the cryptographic problem with each transaction, a new block is generated.


The computer that achieves this feat first is incentivized with Bitcoin. It sounds too simple on the paper, but mining coins consumes a tremendous amount of computational power. It needs a dedicated software to solve the mathematical problem.


Setting up a miner is a capital-intensive task. It calls for advanced infrastructure cost, electricity cost and truckload of other complexities. While setting up a miner the brainstorming primarily revolves around


  • Number of cryptocurrencies the equipment can mine


  • CPU, GPU or ASIC mining


  • Cooling of the powerful equipment


As of late, the mining difficulties are magnifying, CPU mining is no longer yielding profitable results. Miners are moving from CPU’s to ASICs and FPGA’s.

Mining Alternative

The rising power consumption in mining edged Ethereum to transition from Proof of Work to Proof of Stake. This is where Masternodes come into the picture. They open up an alternative way of earning on cryptocurrencies held by the owner.


Making the complex task easier, Masternodes are wallets that are 24*7 connected and synchronized with the blockchain network. A Masternode acts as a security blanket to the network and also plays a vital role in confirmation and rejection of the transactions.


The Masternode owner receives rewards as per the incentive plan established between the owner of Masternode, holder of Masternode and the miner. It gained more traction over CPU mining as its power consumption figures are negligible as compared to PoW. All the owner needs to do is hold the coins and keep them connected to the network 24 * 7. 

MARKMining: Full and Shared Masternodes as a Service

Pros of CPU/GPU Mining

  • Mining does not always required specialized hardware required. Coins can be mined over a mobile phone too


  • It does not require too much of technical knowledge


  • College student mine for fun


Currently the meteoritic rise in the mining difficulties challenged the miners. A lot of debate is going around its profitability. The slump in the prices of cryptocurrencies has led to mining becoming unprofitable. 

Cons of CPU/GPU Mining

  • Tremendous amount of power consumption to solve the mathematical problems


  • Capital intensive infrastructure set up to make it turn profitable


Pros of Masternodes

Masternodes offers investors high-level functions. Let us explore:


  • Increased anonymity and privacy of the transactions


  • Instant sending of transactions as the block generation speed is faster


  • X11 hashing algorithm for enhanced security


  • Reward distribution between the holders and miners


  • Voting right to improve the coin capabilities


  • A less manipulated network as the entry barrier is higher 


Cons of Masternodes

  • The wallets need to be synchronized with blockchain network 24*7


  • Higher barrier entry is the disadvantage too 

Who wins?

As Masternodes run with Proof of Stake and make holding coins two way profitable. To explain, the staker earns loyalty rewards when the price of the coins are soaring up. Each coin offers a different range of distribution of rewards and it is up to you to make the right pick.

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