Only The Rich: How Some Cryptocurrencies Unfairly Advantage the Wealthy - Daily Cryptocurrency
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Dash and Master Nodes
In the simplest terms, a master node is a computer or server that has been set up to process Dash transactions quickly, in a method that is quite different from mining (which the Dash network also has). The owner of the master node is rewarded for operating the node with frequent Dash payments.
Well, only if you have about $300,000 sitting around. You see, in order to set up a Dash master node, you must have least 1000 units of Dash.
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Initial Coin Offerings (ICOs)
Projects like ChainLink are demanding 100 ETH (about $25,000), and Streamr, the platform that I recently wrote about, is asking for a minimum of 5000 Swiss Francs ($5,160).
On the official Slack channel, Henri Pihkala stated that: “Bitcoin Suisse (the company helping with the ICO) imposes a minimum of 5000 CHF equivalent, so the minimum cannot, unfortunately, be below that – at least not for the presale. We would certainly like the minimum to be lower.”
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Proof of Stake (POS)
The proof of stake method of consensus that has been in the news almost constantly ever since Ethereum announced its plans to move to it, and other exciting new currencies like OmiseGo (OMG ) and Crypto Improvement Fund (CIF ) are planning to use it as well. POS has been around for a while, with currencies like PeerCoin, CureCoin, and Clams using it.
With POS, there is a big element of chance involved, and it is, in fact, a lot more like a lottery. The more tickets you have, the more likely you are to win. With POS, the more crypto you hold, the more likely you are to successfully get a staking payout. Holding just one or two units of the currency will almost certainly result in you receiving zero stake payouts.
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