Dash’s earliest innovation was the creation of a two-tier network. The first tier consists of miners and ordinary users, while the second tier is comprised of masternodes. These special nodes provide advanced services to the network.
Several currencies followed in Dash’s footsteps by creating their own two-tier networks. Among these are PIVX, Crown, ExclusiveCoin, and Helium, making masternode-based coins one of the latest trends in the Cryptosphere.
But what is so special about masternodes? Why all the buzz? The first order of business is to break things down and determine exactly what masternodes are and what they do.