Masternodes are servers that bolster a blockchain network and receive tokens as rewards for their contributions. They represent a specific type of node in certain proof-of-stake (PoS) cryptocurrency networks. In addition to verifying transactions, masternodes carry out extra functions, including maintaining a real-time copy the blockchain, introducing new blocks to the network, facilitating instant transactions, enabling private transactions, and engaging in governance processes. They also monitor the network and reject improperly formed blocks.