> For the complete documentation index, see [llms.txt](https://neoxa.gitbook.io/documentation/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://neoxa.gitbook.io/documentation/neoxa-documentation/understanding-smartnodes.md).

# Understanding Smartnodes

Smartnodes, an innovative feature of Neoxa, represent a cutting-edge concept in the world of blockchain technology. Similar to masternodes in other cryptocurrencies, smartnodes are essential components that contribute to the network's efficiency and functionality.

Smartnodes are specialized nodes that operate on the Neoxa network, serving distinct purposes beyond regular nodes. They enable a range of exciting features and services, including lightning-fast and confidential transactions, which set Neoxa apart from conventional cryptocurrencies. These nodes also play a crucial role in the governance and decision-making process of the Neoxa network, allowing stakeholders to have a say in its development through voting and budget allocation.

To operate a smartnode on the Neoxa network, participants are required to hold 1 Million Neoxa as collateral, ensuring commitment and integrity to the system. In return for their contribution, smartnode operators are rewarded with Neoxa, providing an incentivized and decentralized ecosystem.

To operate a Neoxa smartnode, you'll require a configuration consisting of:

* 2 CPU cores
* 4GB of RAM
* A 60GB SSD (Solid State Drive)


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