The blockchain technology that is the basis for all cryptocurrencies is built on the idea that many people will store and maintain the full blockchain. Doing so ensures that it can’t be manipulated, lost, or face other issues. Bitcoin achieves this by using nodes, which anyone can run if they have sufficient computing power, storage, and uptime. This is also how other early cryptos operate, including Litecoin.
While this system has been both revolutionary and very effective, it’s quite limited in its functional effectiveness. In order to help expand cryptocurrency functionality, the concept of masternodes was born. DASH was the first currency to develop and adopt masternodes, a notable innovation that quickly spread to other new currencies. Not incidentally, masternodes are now considered the ‘second generation’ of blockchain systems.
While masternodes are an incredible improvement over the original nodes, nodes may play an even more functional role within the blockchain. That’s certainly what XTRABYTES developers had in mind when they created their STATIC nodes. The latter exercises an immense improvement in blockchain security, leaving some proponents to assert they represent the ‘third generation’ of blockchain technology. Learning about STATIC nodes is essential for any crypto investor, particularly those intent on understanding the future of crypto.
Masternodes, like standard nodes before them, serve to store full copies of a blockchain, which is updated as new transactions come in. Unlike standard nodes, masternodes perform several important tasks beyond simply storing and serving the blockchain. Every coin that uses masternodes employs them for slightly different tasks. In general they include:
- Increased Privacy – Masternodes have the ability to add a significant layer of privacy and anonymity to the blockchain.
- Rapid Transactions – Masternodes can process transactions far more quickly and in greater volume than traditional nodes.
- Decentralized Governance – Masternode operators can typically vote on updates or changes to the cryptocurrency. This enables them to have an important say in the future of the currency.
- Stability – Being designated a masternode requires holding a set number of coins (which varies from coin to coin). This disincentivizes jumping from one coin to another to chase profits, a common for Bitcoin miners.
Masternode owners tasked with maintaining their node generally get well-compensated. However, each cryptocurrency varies in how such compensation is set up. In general, block rewards are split between masternode owners and miners.
Masternode ownership carries with it significant responsibility, particularly for the currency’s reputation. While node owners profit substantially, cryptocurrencies must protect themselves against those with malicious intent. Consequently, node ownership requires owning a tremendous amount of the currency in question. For example, owning a DASH masternode requires that an investor hold a minimum 1000 DASH in cold storage.
In addition to holding the coins, a masternode owner must have a computer server available 24/7 (or nearly so), a dedicated IP address, and enough server storage space to house the entire blockchain.
Understanding STATIC Nodes
STATIC nodes are an entirely new concept in cryptocurrency. While the name seemingly implies that such nodes are unchanging, that is far from the case. STATIC is an acronym for Services Transactions and Trusted in Control.
- Services – Every module that is ever created and attached to the XTRABYTES network will need to be served by a minimum of one STATIC node. These nodes are what facilitate the modular design of the XTRABYTES network.
- Transactions – Every transaction on this network will be processed by all the STATIC nodes.
- Trusted – Every STATIC node is trusted because it is known by the XTRABYTES network, and registered by a deposit of XBY (or XBY + XFUEL).
- Control – The STATIC nodes are what is used to control the entire modular blockchain ecosystem for XTRABYTES.
These nodes work differently than masternodes or traditional nodes in a variety of ways. To start with, the STATIC nodes facilitate the Proof of Signature (POSign) algorithm, a consensus algorithm which doesn’t require mining like Proof of Work. By ensuring a signature rate of 100% for every transaction block, PoSign guarantees security and accuracy at all times.
Another major difference is that in order to compromise the XTRABYTES network, the entire STATIC node network would have to be compromised by one bad actor. It is unreasonable to think this could even be achieved. This innovative technology also eliminates risk of a 51% attack. In the event that one STATIC Node is corrupted or taken off line, the rest of the STATIC nodes will immediately remove it from the network to prevent security issues.
Since STATIC nodes don’t require computing power to validate transactions (they don’t need to solve the progressively more difficult computational problems found in Proof of Work mining), the entire network will require far less energy to operate. This will dramatically shrink the carbon footprint XTRABYTES compared to most mined currencies.
There is a total maximum of 3584 STATIC nodes possible on the system at this point, and these are broken down into different levels of nodes. Each level will have a different required number of held XBY (or combination of XBY and XFUEL) to operate.
- 512 Level 1 STATICS
- 1024 Level 2 STATICS
- 2048 Level 3 STATICS
STATIC node owners can ‘break’ their STATICs at any time, thus allowing investors to sell their XBY & XFUEL investment in full. Of course, any STATIC node that is broken automatically stops receiving rewards for being online (such as earning additional coins and governance control within the system).
Most STATIC owners will want to keep their systems up and running for extended periods, as doing so enables them to accrue transaction fees. These STATIC nodes also requisition XBY and XFUEL tokens, thus reducing the circulating supply and driving investor prices up. As natural demand grows, more and more people will want to operate STATIC nodes.
The Future of Blockchain is Here
XTRABYTES STATIC nodes help to address several critical issues that are currently facing the crypto field. Foremost among these is preventing 51% attacks and remaining quantum resistant. This is in addition to the technology being patented, an expected achievement that will minimize the risk of forks and keep the system stable. While masternodes have certainly been a step forward for blockchain technology, STATIC nodes are taking it to the next level.
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We don’t just publish articles, XTRABYTES is a whole new blockchain platform that allows DApps to be programmed in any language, utilizing a new consensus algorithm called Proof of Signature. In doing so, XTRABYTES presents a next – generation blockchain solution capable of providing a diverse set of capabilities to the general public.