VeChain (VEN & VET) Masternode Mining: Understand How It Works
Designed to support blockchain-based business applications, VeChain is a platform that offers social value as well as real economic resolutions. VeChain aims to provide a secure infrastructure for data management including IoT (Internet of Things). The VeChain Masternode can also be subdivided into Authority Masternode and Economy Masternode. Both the Authority and Economy Masternodes strive to bring a comprehensive enterprise that is focused not only on blockchain ecosystem but the future as well.
The Differences of VeChain Authority Masternode and Economy Masternode:
The Authority Masternode
The first thing to point out is that the Authority Masternode are full nodes on the blockchain. Meaning that the Authority is directly connected to the network using VeChainThor Software and must contain a complete copy of the total nodes. In return, Authority Masternodes are rewarded by said network each time they validate and produce new blocks on the blockchain. Unlike other proof-of-work (PoW) systems, the Authority Masternodes do not compete to become block producers. As it turns out the producers on this particular network are selected at random.
Due to the limited amount of Authority Masternodes, which is set to 101, the operators are directed to individuals or organizations that fall into one of the five different categories. The categories that the operators consist of are, Enterprise Users.
1) Enterprise Users:
This platform focuses on businesses to leverage Authority Masternodes so as to integrate VeChain technology for seamless and rapid deployment of applications for the businesses that are under this platform.
2) Blockchain Development Teams:
VeChain Authority Masternodes under this category should be utilized by the developers to build and execute their DAPPS (decentralized applications) also known as side chains. The Blockchain Development Teams may also use this platform to run cross chain services.
3) Business Development Ambassadors:
To better service the needs of a company's clients, Ambassadors can utilize the Authority Masternodes.
4) Community Contributors:
The Authority Masternodes for the Community Contributors play a vital role in governance as well as the activities designed to grow the community and reach beyond the small group. The individuals that with access to the Authority Masternodes work to facilitate the growth of VeChain as well as govern the interests of the community as a whole.
5) Academic Research Partners:
The Authority Masternodes deligated to these individuals help to create a better VeChain platform through research and to test the DAPPs.
The Process to Be Chosen for Authority Masternode
Not everyone is selected to obtain an Authority Masternode. The VeChain Foundation oversees the applicants and has set forth specific requirements that must be kept at all times. Should an applicant fail in their responsibilities, once they have been selected, they will be replaced by another on the waiting list.
To be selected by the VeChain Foundation to have an Authority Masternode, one must first put up 25,000,000 VET as collateral. The idea behind this requirement is to weed out tire kickers or those with weak character qualities which are looking to cheat the system or attack the network. The penalty for such behavior would result in the funds being slashed.
Next, one must become verified in the VeVID portal. Once a company or individual completes the “Know Your Customer” process, then they are accredited with the verification on the platform. The fourth step is for security as well as performance. To obtain an Authority Masternode, the candidate must be aware that the VeChain Authority Masternode must be located on a server or VPS (Virtual Private Server) running Linux.
The servers should not be exposed in any way or pose any threats to the network. To achieve the ultimate security, VeChain Foundation will conduct a safety test to check the vulnerability of the server and ensure that the server has a fixed IP address.
The final step to achieving an Authority Masternode is through a contribution to the VeChain ecosystem. One must also meet other requirements set forth by the Foundation based on which category the company or individual is under.
The Enterprise Users Mandatory Requirements:
The Enterprise Users must run business activities on the platform including running applications. They must also advise enterprises of a similar industry or size of the company to explore new use case. Plus, the Enterprise User must be utilizing the VeChain platform to provide services to customers.
The Blockchain Developers Mandatory Requirements:
For those applicants in the “Blockchain Developers” category, they must develop DAPP projects or migrate existing projects into the VeChain blockchain all while complying with the regulatory and legal requirements set forth within their jurisdictions. Those in this category must also possess a solid team that can produce clear business and technological roadmaps for where they see the business and VeChain platform growing on top of demonstrating their capabilities to build a broader user base than the one they originate with.
The Business Development Ambassadors Mandatory Requirements:
The further requirements of the Ambassador to obtain an Authority Masternode include the ability and capability to handle business opportunities that relate to the use of VeChainThor. Plus, they have to be willing and able to implement blockchain solutions using VeChainThor for enterprise clients as well as ask for permission for VeChain before implementing the VeChainThor technology on their business solutions ideas.
The Community Contributors Mandatory Requirements:
While those that fall under this category have it a bit more slack to obtain an Authority Masternode, they are still required to contribute in community building. This implies community outreach as well as management. They should also be able to provide expert support in legal, finance, cyber-security and privacy for the Foundation. Or at least assist with documentation that relates to the technicalities of the VeChain technology and development of the platform. Of course, under this category, the applicants are only required to fulfill at least two of the criteria.
The Academic Research Partner Mandatory Requirements:
For the Academic Research category, those that seek to obtain an Authority Masternode must have the capability to advance the research and development for the platform. They also should be able to correspond with the Foundation and keep the Foundation up to date on all subject matter within the VeResearch program.
The VeChain Economy Masternode
As stated before, VeChain is split into two groups, the Authority Masternodes and the Economy Masternodes. For those who wish to get involved with VeChain but can't meet the requirements listed above to obtain the Authority Masternode, there is always the Economy Masternode.
The Economy Masternode is for those that seek to provide stability to the VeChain ecosystem. Those seeking to obtain the Economy Masternode which acts as a point of distributing power and privileges within the blockchain have their own set of regulations and responsibilities that they must adhere to. The main difference though is the amount of collateral one must put up to be considered as an applicant.
Mjolnir is required to put up 15,000,000 VET while the second level is known as “Thunder” puts up 5,000,000 VET for collateral. The third known as “Strength” puts out 1,000,000 VET for collateral. For more information on the Economy Masternodes, see the whitepaper for VeChain.