Masternodes concept has been one of our big innovations, claims CEO of Dash
According to CoinmarketCap.com, there are currently 2364 virtual assets present in the space but most of the users would hardly be familiar with each one of them. The top-10 cryptocurrencies control a majority of the crypto market cap and public attention. However, Dash, a virtual asset currently ranking 15 came into the limelight when they announced they had surpassed 5000 masternodes in their network.
Dash utilizes a subset of users to maintain decentralization, which is termed as masternodes. In a recent interview with Crypto Beadles, Ryan Taylor, CEO of Dash Core Group, indicated that the implementation of masternodes was one of their big innovations on the Dash network.
Taylor indicated that the concept of masternodes was completely different from any other protocol because these nodes had to be collateralized with cryptocurrency: which amounts to 1000 Dash for a single node. Such an arrangement restrains any node from controlling a major part of the network with which the security integrity is maintained.
One of the other innovations that we figured is, like Bitcoin and most crypto at the time allocated a 100% of the block reward to towards mining. In Dash, we broke up our block reward to 45% to mining, 45% to masternodes development which allows the network to scale, and last 10% goes to our proposal system.
He explained that the block reward was divided in order to commence improvements in all the sectors of the network. According to him, the process of mining formed only one part of a stable network. The network also required strong infrastructure servers, high capacity of active nodes and funding for development projects among other things.
Taylor explained the system of the network where anyone could put up a proposal for development. The network voted and if they collectively supported the proposal, it received the 10% reserve funding from the community.
He added that,
We are held accountable for that. If we dont deliver on the proposal, we would be defunded.
Taylor also suggested, that unlike other organizations that entertain ICOs and get capital upfront, Dash conducted their business in complete transparency as they receive their funds under complete assurance.