When most people are looking to setup a Masternode server they either don’t know or don’t give much thought as to why anonymous masternode servers are important. I would venture to say 99.95% or more of servers that host masternodes lead directly back to their owner. Meaning that the server has an IP and that IP leads to a provider, who in most cases has some of your personal information.
Why is this a bad thing?
1.) It is a simple thing in most cases to collect all the server IPs on a project, it is also simple to mass scan those IPs and list them by provider. Picture that the men in black have done so and are now auditing a couple of providers, let’s say Digital Ocean, and Vultr as examples. They now can very easily match your name to an IP, they would be privy to all needed information. Now your name automatically has a red flag raised in their systems, and better believe they will dig farther. It might seem a bit far fetched but really it is not and an easy way for “them” to discover people who are evading in paying their “Crypto taxes”.
2.) Doxing: It happens frequently that hosting providers are tricked into giving out personal information, now your name and information are linked to IP(s) and in the hands of somebody that is obviously up to no good.
3.) Hack & Theft: Hosting providers are big targets and they are hacked. This happens and now the attacker has all of your information, quite possibly the ability to login to your masternode as well. I know, there are no coins stored on your masternodes. BUT if this attacker can hack a hosting company he sure can get your home IP out of your server and attempt to hack it. If successful good chance he will infiltrate your entire home network and wait for the opportunity to steal your stash.
4.) Misc: There are different ways in which an IP can be tracked back to you. Maybe when you first setup your node you had problems and asked for help in some forums or Discord, that can be searched and found long after it happened, from there most likely there is a trail of activity that can be followed and exploited without great effort.
Now maybe you are thinking “dude your nuts, who is going to make this effort?”. I would say “dude, currently a DASH masternode is worth over $50k USD and we are still in a bear market”. There are other high value nodes out there as well 🙂 Also don’t you just value your privacy and anonymity? Why give it away if you don’t have to?
Is it possible to buy a server anonymously?
It is, but rare, and a bit hard to find. https://cryptovh.com is a new server that providing anonymous servers and VPS. All you need is a valid email address and some Crypto!