Node40 streamlines blockchain network incentivization

Like most tales of birth, this story too begins over dinner. It was the start of 2015. Sean Ryan, 35, a New York software developer sat down for dinner with Perry Woodin, 42, New York web developer, app creator, cryptocurrency enthusiast and investor.

The dinner took place at Ryan’s place of residence, which also happened to be a point of attack for his invited guest. “It was an ambush,” joked Woodin.

The pitch was simple: a company to service incentivised blockchain networks. The first project: Dash, an open source peer-to-peer cryptocurrency. By the end of the night, there was excitement, admits Woodin, perhaps some anxiety too, but no commitment. Not yet. That would arrive a short time after — the following morning, in fact.

Woodin recalls Ryan saying at one point, “I don’t really trust many people, so I’m taking a gamble by putting my trust in you and starting a company."

“I was in a job that took up a lot of my time,” said Ryan. “Even though it was a 9-5, it ended up being many more hours and was cutting into my personal life. If I was going to be a part of Node40, I needed to be sure it would not cut into my personal life any more than my then-job did.”

Ironically enough, Node40’s current workload, while rewarding in many ways, now consumes time in giant chunks, given the amount of energy the two spend managing and operating their company.

Nevertheless, it took Ryan just a single night’s thought. He called Woodin the next day and made the career-altering, and life-altering decision, to partner with his good friend — in short: the two were all in and Node40 was founded in late March 2015.

“Within a couple of weeks we had a completely free monitor that people could use to view the health and valuation of their Dash masternodes.”

• Sean Ryan

Masternodes, as Ryan explains, are like a savings account. Users deposit exactly 1,000 DASH to begin a  new server, which was roughly US$2,000 back then, and currently just under US$7,000.

Node40 then spins it up in real-time, within minutes. But the greatest strength is the exceptionally stable hosting environment, that Woodin and Ryan ensure offers seamless and ceaseless uptime, and steady customer revenue streams.

A masternode pays out rewards like interest. The reward comes from performing services for the network, not lending, and thus nodes are incentivized. “The big difference between a traditional savings account and a masternode is that your initial deposit never leaves your possession,” Ryan adds.

Each block generates around five Dash. Of that, masternodes receive 45%, which is about 2.25 Dash. As of this writing 1 Dash is about 0.015 BTC, or US$6.75. The network averages around 576 blocks per day, that amounts to roughly 1,296 Dash in block rewards. With 3,745 Masternodes currently in operation, each generates 0.35 Dash per day.

From Woodin and Ryan’s calculations, each node will receive about 10.5 Dash per month from the network, with customers pocketing 7.25 Dash after paying Node40. The market capitalization of Dash today is listed at US$43,303,558. An impressive valuation that makes them the eight largest cryptocurrency. The networks volume is currently growing at ~8.7%.

“Factoring in the potential for valuation change of Dash, the returns are spectacular.”

• Sean Ryan

One of the beautiful things behind everything blockchain is automation. Immediately after launching his first set of nodes in 2014, Woodin realized the process must be automated, and that nodes have to run within a healthy infrastructure.

“It is not easy to run a secure and robust network infrastructure,” said Woodin. “We created Node40 as a way to provide the most stable platform for launching and managing nodes.”

For a decentralized network, on a global scale, a vast matrix of nodes are necessary for an efficient and well-supported infrastructure. This can require a considerable amount of memory, disk space, bandwidth and other necessary computer hardware.

The two agree, incentivizing nodes should therefore be the standard to running a distributed peer-to-peer (p2p) network. It’s the best approach to promoting the creation and sustainability of a decentralized framework.

“We allow anybody with the necessary collateral and desire to run a node that supports the network they are invested in.”

• Perry Woodin

With one-click deploy, Node40 uncomplicates a complex underlying structure, easing a key barrier to adoption. Users can get up and running quickly, without having to know or really understand the behind-the-scenes workings of decentralizing technology.

The service provides open access to node operation and management, for even the layman computer operator, and helps novice users by automating repairs and offering a simple interface to monitor the health and valuation of any nodes.

Making it accessible and less daunting for those just dipping their feet is a necessary step to wide-scale inclusion, which is itself important to sustaining a robust network.

“A totally new thing can be challenging and this is where customer service plays a pivotal role,” said Woodin, who explained that, as far as his experience within the industry went, person-to-person customer service is quite unique.

“Just yesterday I had a one-hour chat session with a customer in Australia who wouldn’t have been able to participate had no one been there to help,” said Woodin. “We are available via phone and a lot of our first-time customers call us to walk  them through the basics. For a lot of people they just want reassurance from a human voice that they are doing things correctly.”

Even though Node40’s system is built with ease in mind, Woodin and Ryan recognize, especially with new technology and their corresponding systems, adoption, acceptance and widespread use all begin with a basic understanding.

Nevertheless, launching a masternode with Node40 is a simple process, facilitated by a setup wizard that verifies your eligibility by confirming you hold the required collateral. If trouble surfaces, staff are there to assist. This is the crux of building a robust, ceaseless, decentralized infrastructure.

Users must not only be incentivized to start and manage a node, but the setting or environment should also be as comfortable for the novice as it is to seasoned operators. “We are a full service provider,” said Ryan.

“Not only can you easily setup a node through the Node40 interface but you can monitor the health and valuation of the node.”

• Sean Ryan

The company’s software is constantly scanning the network for problems. The security feature monitors any suspect nodes it locates in the sweep and if it continues to misbehave, the software will automatically begin to repair or replace them.

The New Yorked-based company has also integrated push-button voting, push-button upgrades and fully automated invoicing, but the key is the network incentivization. Woodin and Ryan said to expect a new website in June, followed by a new application with an updated and upgraded user interface, amplifying the intuitiveness and user experience.