2Masternodes Interview with CEO Mikhail Korolev
Mikhail Korolev has been working in the IT Industry for more than ten years. His passion is finding and working with new technology trends, and he is excited to be working in the sector of digital currencies. 2Masternodes is a shared masternode hosting service.
At what point did you discover the masternode sector, and which specific projects captured your interest at that time?
We’ve started 2Miners cryptocurrency mining pool in 2017. Although we were aware of what masternodes are we have not had any at that time. The most expensive masternode was Dash with the price of $300K+. Quite expensive, right? We thought it would be good to provide the possibility to start this kind of expensive masternodes collectively to the cryptocurrency investors. We’ve found that there already were masternode sharing services but they have not met our expectations. We thought we could make our own service which must be fully automatic, anonymous and secure.
2Masternodes is not the service where admins calculate the rewards in the spreadsheet and pay out manually. All is proceeded automatically: investment, payout, funds return. A service monitors the masternodes and restarts them if necessary. Sometimes the blockchain is being split and masternodes could appear in the wrong chain. The service could identify this issue and start the blockchain rescan for a particular masternode.
2Masternodes started around March 2018, what was the reason for you to start creating this shared masternodes platform and what were some key components in getting users on the platform?
The first testing masternode was a VIVO one which was started just by 2Miners admins team. The service was just born so some bugs could appear and we didn’t want other people to see them. 2Masternodes beta version was available for public testing in July 2018. This time the service already had the design and anyone could participate in it. The first 2Masternodes users were miners from 2Miners pool and their friends. We have not started any significant advertising campaign running the service as a lean startup. We’ve just made a couple of posts on 2bitcoins.ru, reddit, bitcointalk. We’ve shared these posts to our friends on Facebook and other social media.
Nevertheless, the masternodes quantity was growing day by day. We found that many people not only want to buy a masternode share because of the high masternode cost but also because they didn’t want to spend any time on starting and maintaining the masternodes. Our service helps users to start a masternode in a few clicks. All they need to do is to send their investment to the address specified by the service. The usual manual on how to start a masternode could take 10 or more actions. It usually requires a profound knowledge of Windows/Linux etc. 2Masternodes gives the masternode investment opportunity to everyone. No matter how deep the user is in crypto. Lots of our users just need to buy a specific coin on the cryptocurrency exchange, send it to their own wallet (many of them use mobile Coinomi wallet which is fast and easy-to-use), send to the service. That’s it. No more headache.
Some shared masternode services have implemented ‘Instant Nodes’, where you can begin receiving rewards right away, instead of waiting until the full collateral has filled up. What do you think about this feature and have you thought about implementing it?
Well, this is a nice idea which we were thinking about a couple of times. From an investor point of view, this is really great as you don’t need to spend any time waiting for the masternode to start. The main disadvantage is that the service itself must invest the amount of at least 1 masternode for each coin presented. Some of the masternodes are not that cheap. Moreover, the price (in $) of some of the coins constantly drops. It will lead to irreversible service losses which we are trying to avoid. We already had to delist some of the masternode coins and increase the service fee for some of the masternodes to prevent the losses. Hopefully, the masternodes collaterals are collected quite fast and our users are not annoyed much with the absence of this feature.
We will think of implementing this ‘Instant Nodes’ idea in the future. 2Masternodes service still operates in Beta mode. That doesn’t mean something is broken or doesn’t work. That means the concept is not finally defined. The cryptocurrency business is still very young especially the masternodes market. Lots of the crypto projects are finding themselves constantly playing around with new features. So do we. Anyway, 2Masternodes is about business. Now we are investing money in this project of course. However, we want this project to achieve financial success so we always look for the best way to run our service.
Providing a shared masternode service involves taking care of other people’s money. Which safety measures have been taken to protect the funds on your servers?
We fully understand that we are responsible for other people’s money. That’s why security is our priority. The only data we store is the wallet address of the user. We have no registration and authentication to exclude the possible breach appearance. Each masternode is run on its virtual instance. The critical parts of the system (such as the backend controlling incoming funds) have no external internet access at all and hidden in virtual private networks. There is constant monitoring of vulnerabilities discovered in the packages used by the backend and other systems to prevent breaches based on the abuse of long known vulnerabilities. The zero-day exploits to quickly address any potential problems are monitored as well. Parts exposed to public internet have no control over the funds or the masternodes controlled.
Access to mission-critical parts of the system is limited to a very few core team members. We built 2Masternodes according to industry standard security solutions with multiple layers of protection.
The masternode sector continually expands, is 2Masternodes implementing new features to grow further?
We always monitor the masternode market and add the new coins to provide our users the variety of choice. The user-friendliness and simplicity of use of all our services including 2Miners and 2Masternodes are very important for us. We are working now on the brand new main page of the service. We want to show the detailed statistics for each masternode type to help the users decide which project is worth investing and which is not. That is not easy to decide which masternode to invest in even if you are familiar to crypto. Unfortunately, most of the masternodes coins are rated worse than top-100 in the cryptocurrency rating. Usually, the potential masternode investors have not even heard about these coins. This doesn’t mean they are bad or “shitcoins” as somebody could call them. That usually means that the project is relatively young (to Bitcoin for example which is 10 years old) and you need to spend a lot of time to analyze if this project is credible or if it is better to choose the other one.