MARKNetwork Education Part 3:

Hosted Masternode Services vs. running full Masternodes on a dedicated server or VPS

Short summary of the article:

“Do not get left behind!”

»With the growing popularity of Masternodes, everyone wants to run one. The crypto communities are buzzing with queries like how to set up a Masternode, which cryptocurrency Masternode to choose, and a rulebook to do it.«

MARKMining Shared Masternodes as a Service

Seriously, there is no single answer to these questions!

No masternode setup is alike as each blockchain network is different

But still, we see lots of enthusiasts opting to operate a Masternode the hard way. They are getting involved in the complex task of setting up the Masternode servers on their own. The rush towards Masternodes is primarily because the participant does not have to actually buy the mining gear. The participants power the Blockchain network by using their collateral, and in return, the participants get a fee.


Let us try and make more sense out of the debate of Hosted Masternode services vs running full Masternodes on a dedicated server or VPS. While the former is comparatively easier to set up, let us also understand all the available options.


Before we are ready to run a Masternode, we need to know all of the requirements:


• A server with a certain set of specifications like CPU, Memory, and hard disk capacity

• Bandwidth

• Actual setup steps

• Knowledge of Linux operating system


A VPS or dedicated server is a managed server. You will get help in Linux installation, configuration and all kind of server maintenance service. But no help will be extended for installing the Masternode software and set up. You will be more or less on your own.

Virtual Private Server

A VPS or Virtual Private Server renders your Masternode setup, a dedicated static IP and the desired uptime of 99.9% uptime keeps the operations stable. While you are actually using shared hosting, it is powerful enough to support operations of Masternodes. These are set up and managed by the service providers in a limited manner. The advantage of upscaling is easy with VPS as you can always pay for more processing time to run multiple Masternodes.

MARKMining: Full and Shared Masternodes as a Service

Dedicated Server

You can choose to rent a complete server all for operating your Masternode instead of going for shared services. When you go for a dedicated server, along with it comes the responsibility of managing the servers and doing the Linux set up or you will end up paying a lot for the managed dedicated server. Before you pick up a dedicated server, be sure about the server specs.


With all the advantages bundled, even the best VPS and dedicated server providers do not offer you any assistance in setting up the Masternode, all you get is the infrastructure. Special mention, you must also have the exact coins required to operate a full Masternode (1 full Masternode of Dash = 1000, 1 full Masternode of PIVX = 10,000).


Operating a Masternode still remains a complex task!


Solution follows…

Hosted Masternode service

Operating your own full Masternode requires a certain technical know-how. A hosted Masternode service is a way out of shouldering the risk of technically operating a Masternode on your own. For a little fee, you can take advantage of the hosted Masternode services. You use your own collateral and receive fees from the network for powering a Masternode.


It is convenient and allows a Masternode owner to utilize the power of the hosting service server. The server is set to act as a Masternode with full control of the collateral in the owner’s hands instead of the hosting service provider.


As a fully automatic set up, it even allows operators the choice of owning a full or shared Masternode. With a hosted Masternode service, the operator gets access to a fully secure and reliable Masternode setup over just a few clicks.

Full Masternode

The operator is required to deposit the entire collateral to own a full Masternode. Simply by depositing the exact amount, they commence the operations of a full Masternode almost instantly. The operators have complete control over their collateral and are their own boss to select the Masternode network they wish to power.

Shared Masternode

If you are short of full collateral, with a shared hosting service, you can always participate in the Masternode operations in a shared ecosystem. Pool the minimum stake of collateral and wait for the pool to reach the full collateral amount. As soon as the full collateral is pooled, the Masternode operations will be commenced and the fee generation starts.

The fee is distributed to the participants as per their percentage of participation.

Due diligence for Hosted Masternodes services:

Indeed the process is simple enough and renders you complete flexibility in operating a Masternode:


• Reduces the risk

• Offers flexibility to deposit/withdraw cryptocurrencies to the Masternodes any time

• Withdraw/use the fees to buy more services at any time

• Notifications for activities that will help you monitor the Masternode


Even when the technical responsibilities of operating a Masternode are handled by the hosting service provider, the control of the collateral is in your hands. You need to stay alert and make the right choices like:


• The Masternode network that you wish to power

• What are the fees that the Masternode hosting service provider charges?

• When to withdraw the collateral?

• How frequent does the Masternode network produce fees from the collateral?


Do your own research before you are ready to put in your collateral!

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