Bitcoin Forum

With Bitbay's announcement that they have will be implementing Cold Staking in the coming days I was wondering which coins use it, and if you think its a 'must' have feature moving forward for all PoS?

Im aware of one other which is Decred.

Just to familiarise yourselves with the term 'Cold Staking' - It gives you the ability to put two keys on separate computers.  To break into your wallet the hacker would need to access both computers and break both keys.

It's a nice feature but its name is confusing. Cold storage is offline storage so I thought cold staking would mean offline staking. But that would be dumb and you obviously need (one of) the wallets to be online.

It's closer to multisig but for staking, not for transactions. Not sure what it should be called though.

It is a clever idea.. More POS coins will try to adopt it soon I am sure. It perhaps should give the network more security because more will risk staking their coins now rather than holding them in cold storage only.

would make it cryptolocker virus proof I think! Which is a plus

I absolutely think cold staking is the way to go for POS coins, but then I'm biased of course.
Bathrobehero raises a good point as to what it should be called though. Maybe we can get some suggestions in this thread?

NXT has "Leased Forging", which is more or less the same thing. It has advantages and drawbacks: the advantage is that staking becomes more secure, but the drawback of NXT's design is that it encourages "staking pools" and thus can lead to centralization.

Mybe they shoul copy NEM delagated harveting.
Something like cold POS same metod of doing it.
You create public delegated/cold stacking keys private/public and those keys are bounded on blockchain to your original account.
Shared keys have no power to touch your balance but others can "stacking for you" using those remote data.
You can mine remotely on others online accounts.

Such solution works in NEM for year so far and none can hack/exploit it.

I am pissed off why all POS coins didn't make such feature like NEM have.

Duel locker or Multi locker would be more appropriate I think

This is a great feature! All coins should be adopting this as a priority!
Surprised others are not adopting it. Or are Bitbay & Decred devs just more proactive

dafuq is this nonsense, it sounds like you're trying to kill vampire...

Huh?

Stake trough your heart. Lets see how cold you are.. btw i love posw..

I totally agree with you that the name is somehow misleading, I will like to see this idea work out right, I think this can be implemented soon

It is already implemented in the new release for BitBay. Testing has been going on for a while, and it will have official release march 22nd

So exchanges can stake the coins safely then? No reason for them not to give them to us now when coins are stored there:)

They ought to be able to. However, I don't think they'd want to part with all of it back to the owners  :D
Maybe they could provide different levels of incentives (like commission free trading) if you support them with 'xyz' coin and with 'x' amount of coins you reach tier level '#' and receive '>insert benefit<'.

But as someone pointed out we'd have to worry about the potential for exchange mining pools to essentially centralize the mining.

But I think the solution there is in the product. If a coin can provide stability and a legitimate marketplace for goods and services, then the demand for it to actually be used by people transacting peer to peer, then it would greatly diminish the speculators stronghold on 98% of all the coins in existence. Crypto is still in it's infancy. It will stay that way until we can provide the necessary tools to take out the middlemen once and for all and complete Satoshi's dream. I think once that happens the fear of centralized mining pools controlling a coin supply will no longer be an issue as traders will also be competing against 'actual users' on the exchanges.

i am no expert in this matter but isn't "staking" and the reward you get from it because of running the wallet and actually contributing to the network!

in any case i think this is a "must not" have because that means the rich get richer and the poor get negligible amounts.
also on top of that when you give away "free coins" which in this case are free coins for just hodling, you are increasing the supply and consequently the sell pressure on the market and crashing the price. and in the end it is as if you didn't give any reward at all.

thats how the world works! if u have more in your bank account you get more more interest. If i had more i would expect more!  If i held #1 wallet i'd be pissed off if i was earning the same as #3000 wallet!

Also you are wrong - you still need to be connected to the blockchain but can use 2 machines to do it. At least thats how i understand it from reading up on it

mind blowing they have implemented this really! Congrats to the team.

Thanks your all your replies

I think it is a necessary feature.

There are a lot if people that don't want to fool with running a node 24/7, and the insecurity that comes with that.

Sure, it leads to centralization of staking, but I think security is more important. The chain is better off with having the extra coins staked in a more centralized manner than having them not staked at all.

It will also help towards creating truely deflationary cryptocurrencies, which I have been a big proponent of lately. https://bitcointalk.org/index.php?topic=1858954

Inflation creates massive downward pressure on the free market, negatively effecting the value of cryptocurrencies. Most people buy cryptocurrencies as an investment, so I think eliminating this inflation is ideal.

No it doesn't it makes it twice as vulnerable.

No. You should not be able to earn coins without contributing to he network. In pow, miners earn fees and block rewards. In POS, staking nodes earn fees and % of their coin. Rewarding a wallet for existing is pointless. If everyone has 1% more coin tomorrow, no one is better off than they were today.

DNotes 2.0 will feature cold staking when the update is released in September.

Core updates:

Proof of Stake
Will move power of the network away from miners, and into the hands of currency users / holders who share the network's best interests. Effectively pays out an interest (~2%) for running a node on the network. Paying out the block reward to holders creates a benefit to holding the currency by means of earning 'interest' from the currency, which combined with a reduced block reward (more than half) will likely mean many fewer DNotes on the sell side at exchanges, and what is there will likely dry up over time.

Non-Staking savings accounts / CRISP 2.0
All deposits held at our secure DNotesVault will earn a further ~2% on all deposits held for 30 days or more, which encourages savings - the foundation of any healthy economy. Both the staking reward, and the CRISP reward can be earned at the same time for a total of ~4%.

Cold Staking
Users can defer privileges to stake coins from one wallet to another. So a wallet with no coins in it can be awarded the privileges to stake on behalf of an offline wallet containing many coins. This means coins are never exposed to security risks connected to the internet, and can still earn the stake reward. DNotesVault accounts will be cold-staking capable to allow DNotes holders to both run a node to earn the staking reward, and earn the CRISP savings reward - all the while having their coins held securely in cold storage.

Automated Invoicing...

Continued...  -  https://bitcointalk.org/index.php?topic=1924858.680

the "Deep Freeze"

After reading the title i also thought that it would be like that the coins will be staked even with the wallet being offline and I was dreaming me. me making coins with my POS wallets offline.
But now I see what is the concept behind this.

I guess DNotes 2.0 is giving a new definition to cold staking. You can keep your DNotes in a secure offline wallet, and have that wallet stake to an online wallet (that can have a zero balance). You could then transfer the staked coins to your offline wallet if you wish.

Part of the September 2017 massive upgrade to DNotes:

"Cold Staking
Users can defer privileges to stake coins from one wallet to another. So a wallet with no coins in it can be awarded the privileges to stake on behalf of an offline wallet containing many coins. This means coins are never exposed to security risks connected to the internet, and can still earn the stake reward. DNotesVault accounts will be cold-staking capable to allow DNotes holders to both run a node to earn the staking reward, and earn the CRISP savings reward - all the while having their coins held securely in cold storage."

Particl.io p2p private decentralized marketplace will activate it via fork in november  :)

Well not everyone will be staking.  But through staking, you will be in essence freezing the supply of tokens. If demand remains constant, then it increases the equilibrium price, that would actually make everyone better off.  Especially those staking and receiving rewards for it.  Once more people catch on to this idea, we'll definitely see more POS coins doing this.