Bitcoin Proof of Stake, an exciting new Peer-to-Peer Electronic Cash System, is launching one of the safest ways to generate passive income in cryptocurrency, Cold Staking! The company aims to develop a Bitcoin Proof of Stake consensus that will improve the original Proof of Work system.
What is Cold Staking?
Cold Staking is known as the newest method of staking coins without being under threat of attack, and that’s because it mostly uses an offline wallet to keep your coins. At the microeconomic level, it guarantees your money is protected from hackers most of the time, but it also protects the planet by using less energy.
What BitcoinPoS offers?
Bitcoin Proof of Stake – BitcoinPoS entered the cryptocurrency world in the beginning of May 2020. In just a few months, it already conquered the crypto enthusiasts, by focusing on two of the biggest technologies nowadays – Bitcoin Core and Proof of Stake.
With a team of dedicated employees who continuously develops solutions for improved safety, BitcoinPoS aims to migrate Bitcoin to a Proof of Stake consensus. This serves as proof that cryptocurrencies are gradually evolving.
And now they are ready to allow users to delegate the staking to third parties in a more secure way. The version of Cold Staking developed by BitcoinPoS will require two wallets:
- The first one will hold the funds and receive the rewards, preferably by using a hardware technology, and the wallet does not need to be online all the time;
- The second one will be the hot-node, which needs to be online 24/7
This will involve a hard fork of the blockchain and will be a mandatory update for all clients. With this feature, hot wallets will serve just to perform the staking operation, improving the safety of your income.
The advantages of Cold Staking
The idea of staking in general was extremely well received by the cryptocurrency community, being a way of generating extra income without using much energy, in opposition to mining.
The fact that you can earn transaction fees by participating in Staking Pools and get rewarded for it increased the popularity of cryptocurrencies. But with great income come great hackers, so the Cold Staking feature became a must in order to improve security and minimize risk.
Now you can safely store your coins in offline hardware wallets or air-gapped software wallets. It was about time for some gold armor!
Cryptocurrency began with the idea of giving people independence, and in just a decade it evolved according to their needs. Little by little, Bitcoin and altcoins are going to get the same power as the actual main currencies, and this process is happening right now. The new Cold Staking feature is proof that history books are still being written.
If you want to keep up with the BitcoinPoS updates, be sure to follow them on social media platforms!