Master Nodes

Definition ∞ Master nodes are specialized cryptocurrency nodes that perform advanced functions beyond standard transaction verification, such as enabling instant transactions, private transactions, or participating in governance. Operators of master nodes typically stake a significant amount of the network’s native cryptocurrency as collateral. In return, they receive rewards for their services. These nodes contribute to network security and functionality.
Context ∞ The role and economic viability of master nodes are frequent topics in crypto news, particularly for networks that utilize them. Discussions often center on the return on investment for node operators, the security benefits they provide, and their influence on network decentralization. Changes in network protocol or token economics can significantly affect the appeal and operation of master nodes.