MasterNode A masternode is a full node which stakes a certain amount of cryptocurrency, and is rewarded for doing so. Staking helps the network by reducing selling pressure, so masternodes are incentivised with cryptocurrency rewards. The resulting reduction in circulating coin supply can also help to increase the value of a given cryptocurrency. Higher-value rewards help masternode operators offset the costs of operation, while also inspiring the creation of more masternodes. These financial incentives also help to ensure masternodes behave honestly. A Service Node is a masternode which provides utility beyond simply storing and validating the ledger. Service Nodes can perform actions which benefit the blockchain directly, such as checkpointing, or completely different things like routing messages. Service Nodes can be used to create real-life use cases for blockchain. For example, Service Nodes can be used as nodes in an onion routing network, like dARQNet. This brings additional value to the network as a whole, and increases the long-term demand and viability of the cryptocurrency powering the blockchain.