In 2017, masternodes were popular among many altcoins and seen as insurance against losses. Some commentators are saying the same thing is happening today with staking.
Binance CEO Changpeng Zhao recently retweeted a tweet comparing masternodes to staking rewards. “We are doing that masternode thing again!!” the user writes, in response to Binance announcing support for Algorand (ALGO) staking.
Staking does look a lot like masternodes for exchanges, except this time they will be the ones responsible for distributing rewards. So-called ‘passive staking’ has become popular on Binance and beyond as a way to make added revenue on deposits. In effect, exchanges are able to operate multiple nodes (of which there are a limited amount of spots) which effectively run like a ‘masternode’ on the network with significant influence.
Of course, this is all dependent on the specificities of each proof-of-stake network. However, it seems as though in Zhao’s mind, proof-of-stake rewards are much like ‘masternodes + exchanges.’ Read More