What is an Authority Masternode (AM) in VeChain?

If you have been exploring the world of blockchain technology, you may have come across the term “Authority Masternode” (AM) in the VeChain ecosystem. This article aims to unpack the concept, providing an understanding of its significance, operational mechanisms, and the diverse role it plays in the VeChainThor blockchain.

What are Authority Masternodes (AM) on VeChain?

Essentially, the Authority Masternode functions as a central server connected to the VeChainThor network, running VeChainThor programs while carefully maintaining a complete record of the blockchain.

These nodes, known as full nodes, play a crucial role in validating, confirming, and even initiating blocks on the VeChainThor blockchain. In exchange for this vital service, Authority Masternodes are rewarded with VET, the native crypto asset of the VeChain network.

It is important to note that they receive 30% of VeThor generated from transactions, while the remaining 70% is usually burned.

Also read: What are Nodes and How They Work in Blockchain

Proof-of-Authority (PoA) Consensus

The VeChainThor blockchain operates on a Proof-of-Authority (PoA) consensus model, where Authority Masternodes validate each transaction.

Despite a rigorous validation process, the blockchain remains open source , allowing seamless synchronization of the complete ledger and initiation of transactions without requiring explicit permission.

Requirements for Becoming an Authority Masternode

Starting the journey to becoming an Authority Masternode involves completing certain prerequisites. First, the individual or entity must undergo a “Know Your Customer” (KYC) verification process through the VeVID portal, establishing them as a verified user on the platform.

Once this crucial step is completed, prospective AM owners must meet the following criteria:

1. Collateral Requirements: A minimum of 25,000,000 VET must be pledged as collateral.
2. Server Specifications: AM must be hosted on a Linux-based server with a fixed IP address.
3. Security Measures: Servers hosting AM must be free of major vulnerabilities, ensuring a secure environment.

Most importantly, AM owners must demonstrate commitment to improving the VeChain ecosystem in their respective domains.

Authority Masternodes Category

Authority Masternodes in the VeChain ecosystem serve various stakeholders, and they can be categorized into five different groups:

1. Enterprise Users: Use AM to deploy blockchain applications, reducing operational costs.
2. Blockchain Development Team : Creates and manages decentralized applications (DApps) on the VeChain blockchain.
3. Business Development Ambassador : Leverages network solutions to meet corporate client demands.
4. Community Contributor : Actively promotes the development of the VeChain community and represents the interests of the community.
5. Academic Research Partners : Leveraging AM for technological studies and testing of DApps, contributing to continued innovation.

Conclusion

Authority Masternodes in the VeChain ecosystem are not just nodes; they are dynamic entities that contribute to the growth, security, and governance of the VeChainThor blockchain.

Whether you are a technology enthusiast, developer, or business looking to explore blockchain solutions, understanding the role of Authority Masternodes is key to unlocking the full potential of the VeChain robusta ecosystem.

Also read:

How Does Blockchain Work?

What is Block Size or Block Size on Blockchain

What is a Block and How it Works in Blockchain

Layer 1 vs Layer 2 Blockchain, What's the Difference?

DISCLAIMER : This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.