VeChain Masternode Explained

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VeChain Masternode

VeChain Masternode Explained

Last Updated: 1st November 2018

VeChain is a platform that is designed to support blockchain-based business applications that offer real economic and social value. It aims to achieve this by providing a robust infrastructure for data management and Internet of Things (IoT) solutions. The VeChain Masternode, which can further be subdivided into the Authority Masternode and Economy Masternode, is designed to bring about a comprehensive enterprise focused blockchain ecosystem.

VeChain Authority Masternode

An Authority Masternode is a server that is connected to the network operating the VeChainThor software. Authority Masternodes are the only full nodes on the blockchain, and must possess a full copy of it. Authority Masternodes are rewarded by the network in exchange for validating and producing blocks on the blockchain. It is also important to note that operators of this VeChain Masternode do not compete to be block producers, as proof-of-work (PoW) systems require. Instead, block producers on the network are selected at random.

The number of Authority Masternodes is currently limited to 101, and operators of this VeChain Masternode are directed to organizations or individuals that fall into one of the following five categories:

  • Enterprise Users – VeChain is a platform that is focused on enterprise use cases, and as such, encourage businesses to leverage Authority Masternodes for a rapid and seamless deployment of business applications.
  • Blockchain Development Teams – Authority Masternodes can be utilized by developers to build and execute their decentralized applications (dapps) or sidechains on the VeChain blockchain. Authority Masternodes may also be used by developers to run cross chain services.
  • Business Development Ambassadors – Ambassadors can make use of Authority Masternodes to take advantage of VeChain business solutions in servicing the needs of their enterprise clients.
  • Community Contributors – these individuals are seen as vital in facilitating the growth of the VeChain community, and also represent the interests of the community at large. Thus, Authority Masternodes serve an important role in governance and activities designed to grow the reach of the ecosystem.
  • Academic Research Partners – Academics conducting technological research can leverage Authority Masternodes to test out dapps.

The VeChain Foundation is responsible for reviewing all prospective Authority Masternode applicants, and also to ultimately decide who is designated an Authority Masternode. If an operator continuously fails to meet the requirements for an Authority Masternode after being selected, they will be replaced by another applicant on a waiting list.

The necessary requirements to be an Authority Masternode on the platform are as follows:

1. 25,000,000 VET – Authority Masternode owners are required to put up 25M VET as collateral. The rationale behind this is to disincentivize bad actors from cheating or attacking the network, as collateralized funds will be slashed.

2. VeVID (Verified IDentity) – Prior to the application to become an Authority Masternode, the individual or organization must first complete ‘Know Your Customer’ (KYC) verification in the VeVID portal. Successfully obtaining VeVID signals that the individual or organization is a verified user on the platform.

3. Security and Performance – An Authority Masternode must be located on a server or virtual private server (VPS) running Linux. Servers should not be exposed to anything critical or high-risk vulnerabilities. A vulnerability test of the Authority Masternode environment will be performed by the Foundation. Furthermore, Authority Masternodes must be on a server with a fixed IP address.

4. Contribution to the VeChain Ecosystem – All accepted Authority Masternode owners are automatically accepted into the VeChain community that will be built at a later stage. However, applicants must meet the following requirements in order to be accepted:

Enterprise Users:

  • Run applications and business activities on the platform.
  • Utilize the VeChain platform to disrupt business models and provide services to customers.
  • Collaborate or advise enterprises of a similar industry and size in exploring novel use cases.

Blockchain Developers:

  • Develop or migrate dapp projects to the VeChain blockchain.
  • Comply with legal and regulatory requirements within respective jurisdictions.
  • Possess a strong team and a clear technological and business roadmap.
  • Demonstrate capabilities of growing a large user base.
  • Have projects with a working application or in the testing phase.

Business Development Ambassadors:

  • Capability to handle business development opportunities relating to the use of VeChainThor.
  • Ability to develop and implement blockchain solutions on VeChainThor for enterprise clients.
  • Seek permission from VeChain if they would like to implement VeChainThor on business solutions.

Community Contributors must fulfill at least two of the following criteria:

  • Must be able to contribute in community building, such as community management and outreach.
  • Ability to assist with documentation relating to the development and technicalities of VeChain technology.
  • Be able to provide expert support for the Foundation and governance mechanism in areas such as: legal, finance, compliance, cyber-security and privacy.

Academic Research Partner:

  • Capability for advanced technological research and development.
  • Be able to collaborate with the Foundation on subject matters within the VeResearch program, in order to further the technological development of the VeChain blockchain.

VeChain Economy Masternode

The VeChain Economy Masternode is different to the Authority Masternode in that it seeks to provide stability to the VeChain ecosystem by acting as a point of distribution of power and privilege within the blockchain economy. Subdivision of the Economy nodes, alongside their respective collateral requirements, in accordance with the VeChain whitepaper are as follows:

  • Mjolnir – 15,000,000 VET
  • Thunder – 5,000,000 VET
  • Strength – 1,000,000 VET