Comparison of Credits masternodes and Dash masternodes

Dash is quite possibly the best known cryptocurrency that includes masternodes. Whereas traditional cryptocurrencies such as Bitcoin only provide proof of work (PoW) rewards from mining the coins, The next generation of coins support proof of stake (PoS) as well as PoW. The use of masternodes benefits the entire coin network as it increases the overall processing power and availability of the blockchain on the Internet. Users who maintain an active masternode are given a PoS reward on a scheduled basis, that is that they are rewarded an amount when a block is solved through PoW mining of the coin.

There is of course a catch. To run a masternode you first need to have a certain number of coins (collateral) set aside to keep the masternode active on the network. You also need to host the masternode yourself or pay a hosting company to provide you with a server to run the masternode on.

With Dash, the current requirement to run a masternode on their network is 1000 Dash and at the time of this post, that equates to $315,390 USD. Certainly not cheap. The masternode reward for Dash is 45% of each block solved. This reward is fixed which means that the more masternodes on the Dash network the fewer rewards you’re likely to receive over time. The reward structure for Dash masternodes can be found here.

Credits on the other hand requires 5,000 CRDS to host a masternode on their network. That being said, Credits is designed to increase the masternode rewards over time. Initially masternode rewards are 10% of the block reward, however this steadily increases up to a maximum of 90% of the block reward after about 9 years (bock height of 4437789). The reward structure for Credits masternodes can be found here.

With Dash currently requiring an investment of more than $300,000 USD it is probably too late for most of us to set up a masternode on their network. Credits however is currently trading at about $0.05 USD which means a masternode will cost a much more affordable $250.

There is little doubt that the value of Credits will increase in the not too distant future, and also that their are far greater rewards for masternodes on Credits than on Dash.

Credits can currently only be mined or purchased on the CoinsMarkets exchange.

Further details can be found on the Credits website.

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