Masternodes are becoming a popular way to earn passive income in the cryptocurrency world. By hosting a masternode, users can play a key role in blockchain network operations, often earning rewards in return. However, this requires technical knowledge and a significant initial investment. Masternodes perform functions like facilitating fast transactions, boosting privacy, and participating in governance decisions. To become a masternode, users need to lock a certain amount of the network’s cryptocurrency as collateral and configure a dedicated computer within the blockchain network. Rewards for masternodes include a share of transaction fees and block rewards. However, running a masternode also comes with risks, including market volatility, technical risks, operational costs, and regulatory changes.