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Masternodes Meaning

Specialized, high-performance servers on certain blockchain networks (most famously Dash) that perform advanced services that a standard node cannot. These tasks often include InstantSend (near-instant transaction finality) or PrivateSend (obfuscating transaction history for privacy).

To prevent Sybil Attacks, where one person creates thousands of fake nodes to control the network, masternodes require a significant stake of collateral-typically a large, fixed amount of the native coin. This ensures the operator has skin in the game.

If they act maliciously, they risk the value of their own holdings.

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