Overview of the new Decentralized Fair Payment System (dFPS)
Masternodes are typically a node that can be ran on certain cryptocurrency networks. They take a certain collateral amount to provide a dynamic or static reward from the consensus method of that cryptocurrency.
Popular masternode coins such as Dash (DASH) and Pivx (PIVX) have centralized and non-random rewards systems. This system usually involves a pair of keys controlled by a centralized party or party(s) that pays out based on the first to start a masternode, and then proceed to pay out down by rank an ordered list of active masternodes. This centralized rewards system is neither random nor fair, as there is an incentive to try to kick other nodes offline to gain an unfair advantage for increased rewards. This Decentralized Fair Payment System (dFPS) was first ever introduced on the Denarius (D) blockchain seeks to fully decentralize masternode rewards with a fair and balanced reward system based on taking the current block hash, scanning back what happened in XYZ blocks, and then balancing out rewards all decentralized within protocol on the Denarius (D) network without the need for the old centralized system.
The Process of dFPS
Users send the collateral amount to an address (e.g. 5,000 D) and then waits 500 confirmations, approx. ~4 hours. After 500 confirmations, the Fortuna Stake (masternode) can be started. The hashed Denarius address then enters the registered mode within the network of Fortuna Stakes (masternodes) and now waits for one full round of payments. One full round of payments is equal to how many Fortuna Stakes are already active. For example, there are 446 Fortuna Stakes online at the time of this writing. You would need to wait essentially 446 blocks for a full round of payments. Once this round ends, the FS node (masternode) changes to Active for Payment, and will begin receiving fair and balanced payments decentralized through the Denarius (D) network for both Proof of Stake and Proof of Work block rewards.
Fortuna Stakes – dFPS powered masternodes
The Denarius dFPS network decides who to pay, based on the income amounts of that particular Fortuna Stake (masternode), and whether the Fortuna Stake (masternode) is an active node or not. Every time the network checks a Fortuna Stake payment, the node searches back in time to find out how much everyone got paid on XYZ past blocks. The dFPS system within Denarius (D) ranks those Fortuna Stakes (masternodes) based on how much they have been paid compared to other nodes, and then calculates an average of how much is paid. If any FS (masternode) is paid more than the average, then the block will be rejected by the network. Block rejection is when the block does not get validated or accepted into the blockchain. If the FS (masternode) has a consensus average paid reward across the network, it will be paid appropriately during the payment rounds, and the block containing its payment will be accepted into the network. The decentralized fair payment system was originally implemented into Fortuna Stakes (masternodes) on the Denarius (D) blockchain for the first time ever.
Origins of dFPS
The Decentralized Fair Payment System has its roots from DASH (previously Darkcoin) as the DSEE and DSEEP messages are based off of the original DarkSend protocol. These messages are the heartbeat signal keeping all of the active wallets in sync with the Fortuna Stake (masternode) list and protocol across nodes. Masternodes always had a large flaw of being centralized throughout its different implementations such as DASH and not even being considered by Bitcoin, Litecoin, Monero, and other cryptocurrencies. dFPS solves the problem of centralized masternodes and enables a fully decentralized network with Denarius (D) and its Fortuna Stakes.
Official Website for Denarius (D): https://denarius.io
Official Community Forums: https://denariustalk.org
Official Discord Chat: https://discord.gg/UPpQy3n
Disclaimer: This is not trading or investment advice. The above article is for entertainment and education purposes only. Please do your own research before purchasing or investing into any cryptocurrency or digital currency.