Dash, short for Digital Cash, is a privacy-centric digital currency known for its speed and low fees. It is built on a decentralized network where masternodes play a crucial role. These masternodes, unique to Dash, are powerful servers that host an entire copy of the blockchain and provide advanced transactional functionalities like InstantSend and PrivateSend. They not only increase the stability and security of the network but also provide a means of earning passive income, as they receive a portion of the block rewards.

Operating a Dash masternode does require a certain level of technical know-how, as well as dedicated hardware and stable internet connection. This is where a Virtual Private Server (VPS) comes in handy. A VPS offers a balanced mix of performance, stability, and cost-effectiveness, making it an ideal choice for running a Dash masternode.