The blockchain industry is among the fastest-growing industries, with a staggering annual growth rate of 56.3%. While the blockchain market is poised to be worth $163.83 billion by 2029, there are several significant hurdles to mainstreaming the technology. The biggest one is mass adoption. Now, what prevents mass adoption of the technology despite the crazy hype around it?
Lack of awareness would be an obvious answer. While the mass adoption of blockchain is inevitable, with 44% of the top 100 companies already using the technology, there are certain roadblocks delaying the imminent. These issues include a lack of interoperability, transaction limits and network congestion. Lack of scalability is a major challenge with the blockchain trilemma preventing enterprises from embracing the technology with open hands.
Besides the blockchain trilemma, which leaves innovators with a scalability challenge, the translucent regulatory guidelines in different countries add to the challenge. As blockchain businesses and innovators rush to find the answer to the blockchain trilemma, masternodes emerge as a potential solution.
What Are Masternodes and How Do They Solve The Problem?
Masternodes increase trust in transactions by verifying new blocks that are added to the blockchain. They perform different roles, including governance, management, and regulatory roles, depending on the blockchain network they are participating in. The origin of masternodes dates back to 2014 when a developer named Evan Duffield came up with the idea to add a second layer in mining. Thus, masternodes have a role to play wherever there is DAO (Decentralized Autonomous Organization). In fact, Duffield used the concept to implement a decentralized governance system and a process of voting between the parties. Eventually, the concept of DAOs was born.
How Do Masternodes Work?
Masternodes serve like extended serves, just like regular nodes, enabling scalability to decongest the existing network. They utilize the proof-of-stake (PoS) consensus protocol, enabling masternode owners to establish a node through staking. However, there are some masternodes that use the proof-of-work (PoW) consensus mechanism. MPower is an example of a protocol that uses the PoW mechanism.
Nodes Vs Masternodes
Masternodes play a unique role in the infrastructure of cryptocurrencies such as Bitcoin. Unlike regular nodes, masternodes do not add new blocks to the blockchain but rather verify every block that is added. Additionally, masternodes have special roles in governance and management. However, to become a masternode operator, one must own a certain amount of cryptocurrency as part of a collateral-based system. As compensation for their work, masternode operators typically receive a percentage of their stake on a regular basis.
How Crypto Startups Are Using Masternodes For Scalability
Morpheus.Network, a blockchain-powered supply chain management middleware platform, has decided to set up masternodes to increase trust in supply chain transactions. The need for setting up masternodes was felt due to the increased adoption of Morpheus.Network’s solutions by enterprise clients globally. The platform has been involved in several Enterprise partnerships with leading industry clients and partners such as Gulftainer, Federated Coop, and Coca-Cola. Also, the ever-growing partnerships with government organizations like SENASA in Argentina, demand a more powerful and easy-to-scale network for Morpheus.Network’s SaaS to be implemented at a global scale. Thus. masternodes are directly linked to the expansion of Morpheus.Network architecture.
As trillions of dollars worth of goods are transported worldwide involving multiple intermediaries, establishing trust in logistics becomes crucial to enhance transparency. The masternodes solution offers a unique approach by creating a digital twin of the supply chain data. This data is then validated by masternode validators to pass through a trust layer. Masternodes ensure that all approved stakeholders can access the trusted data validated by the operators. This lays the foundation for a secure and transparent global logistics network, which aligns with Morpheus.Network’s objectives.
The Road Ahead
Many cryptocurrency companies leverage masternodes to achieve scalability, enhance decentralization, and foster trust in transactions. Prominent crypto projects like ION, DAS, Syscoin, Polygon, and FLUX are among those reaping the advantages of masternodes within the crypto ecosystem. With the growing adoption of Morpheus.Network’s middleware, masternodes are poised to become an integral part of the blockchain in the supply chain industry. It is evident that masternodes will play a pivotal role in driving the widespread adoption of blockchain technology across various sectors.
If you are someone who is extremely passionate about blockchain technology, you can contribute to a decentralized future and transform the global supply chain by running a Morpheus.Network TrustMNW masternode: https://trustmnw.com
Image by Gerd Altmann from Pixabay