UPDATED 17:21 EDT / SEPTEMBER 23 2016

NEWS

Node40 launches hosting for Dash blockchain governance

Albany-based Node40 LLC, a technology startup focused on digital governance, just announced the official launch of its service from a successful beta phase.

The company hosts masternodes — an infrastructure element important to the security of a blockchain platform — for the Dash cryptocurrency network, which subsidizes nodes by providing passive income to node hosts.

Dash is a blockchain-based cryptocurrency similar to Bitcoin, but focuses heavily on solving the lack of anonymity in Bitcoin transactions (Bitcoin transactions are pseudonymous not fully anonymous). Dash launched in June 2015 and at $78.5 million USD is now the seventh most valuable cryptocurrency in the world by market cap.

Blockchains, distributed ledgers that use cryptographic work to secure historic data and enforce trustless environments, continue to gain traction as infrastructure for financial technology as a tool to provide accountability. One hurdle for blockchains is the need for distributors to hold full copies of the ledger (called “nodes”) that also enforce the rules of the network, these nodes act to keep the network sane while “miners” do the hard work of securing transactions into the ledger. The problem: Running the hardware and software of a node costs money, and without extra incentive, few people run nodes.

To solve this, Dash introduced “masternodes” or nodes that also get paid for providing the software service. In the case of Dash, masternodes are paid half of the block reward, the same as miners. Node40 taps into this by hosting masternodes for investors on the Dash network who then earn passive revenue by participating.

Dash launched in June 2015 with 2,500 masternodes, which increased to 3,300 by October 2015. Now the network has 4,100 nodes, an increase of 60 percent since launch.

“Hosting a masternode is an incredibly simple and valuable way to break into the burgeoning virtual currency space,” said Node40 founder and Chief Executive Perry Woodin. “While some people can actually host a masternode on their own, they run the very real risk of missing a network reward unless their server stays online 24/7. At Node40, we provide peace of mind.”

In fact, it is possible to run a Dash masternode on a Raspberry Pi (a tiny network-enabled Linux-based personal computer). Although it does take knowing how to set up the computer, connect everything and the advanced knowhow in building and deploying the masternode. Node40’s service is designed to be a turnkey host that does all of this in the background.

Node40 Founder and CEO Perry Woodin. Image courtesy of Node40.

Node40 Founder and CEO Perry Woodin. Image courtesy of Node40

It costs Dash to make Dash: investing in the network to build security

“With Node40, users with 1,000 Dash can hold their own private keys and easily set up a revenue-generating node in a matter of minutes,” Woodin said. To start up a masternode, a host must buy into the network with 1,000 Dash, or approximately $2,500. This pool of cryptocurrency is used as a collateral stake in the network.

“As long as a masternode is capitalized and connected to the network, every month the Dash network pays our customers directly,” he said “Our technology ensures guaranteed uptime for servers, critical to ensuring customers never miss a payment from the Dash network.”

Monthly rewards for owning a Node40 mastermode vary dependent on the number of masternodes on the network. Currently the rewards average around 7.7 Dash/month (about $89), whereas the price of using the Node40 is 2.7 Dash/month (about $31).

Dash masternodes are also given the capability of voting on budget and important decisions that affect Dash. Each masternode receives one vote. Masternodes hosted by Node40 receive a simple push-button voting interface to allow investors to keep up with current initiatives as well as participate in votes.

In the ecosystem of masternode hosting services, Node40 is not alone and it must advance interest in order to compete. Competitors include Masternode.me, a masternode hosting service with a mechanism for less-than 1000 Dash buy-ins; and Splawik`s Super Shares Service, a hosting/pooling service traded on the Dash forums. Other node hosting services exist, but Dash masternode hosting persists more or less as a niche industry at the moment.

Better user interface for Node40 users

As part of Node40’s launch from beta, the company has improved the user interface in order to make it easier to participate and monitor masternodes.

Screenshot of Node40 masternode user interface.

Screenshot of Node40 masternode user interface.

“After months of development, we’re proud to announce the deployment of a vastly improved user interface for Node40.” Woodin added. “Node40’s new interface provides continuity with step-by-step instructions, and an improved experience for customers to manage and monitor the health and valuation of their investment.”

Screenshot of Node40's masternode monitoring user interface.

Screenshot of Node40’s masternode monitoring user interface.

Inspired by everyday online banking, the new Node40 interface is designed to visualize the investment for participants. Node40 will introduce new features in the future including a Masternode Portfolio Insight that will allow users to download monthly, quarterly, yearly and ad hoc reports about masternode performance.

Image credit: CC0 heladodementa, Pixabay

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