CashHand cold staking
Traditionally, in a Proof-of-Stake consensus algorithm, block producers are required to keep the private keys to the staked coins in online nodes.
The reason is twofold. First, whenever a valid kernel input is found, the corresponding UTXO is used as input for the coinstake transaction and therefore its private key is needed to produce the transaction signature.
Second, after the block is assembled, it must be signed with the same private key.
Even if the wallet software has a password protection which enables the use of private keys “only for staking”, the wallet still needs to be unencrypted, which leaves it prone to multiple kinds of attacks on compromised systems.
Large token holders might find the reward for staking not worth the risk described above, resulting in less participation in the block-creation process, which lowers the overall security of the network (as it is proportional to the number of coins being staked).
With “Cold Staking”, block producers are still required to keep a node online, but the private keys for the staked coins can be safely stored offline. This is achieved by signing a special “contract” transaction which transfers the coin’s staking rights, without transferring the coin’s ownership.
CashHand released its latest version 2.0 with the ability to cold staking.
cold staking allows a person to delegate their staking power to another wallet, but one that is not connected to the internet to keep coins safe and secure in an offline wallet. At the same time, an empty online wallet is connected to the offline wallet and earns rewards for it. This empty wallet can stay online 24/7 without running the risk of being hacked.
As keeping a wallet running all the time is not suitable for most people, either due to the cost of running a computer all day long or a bad internet connection, this is done via a VPS (virtual private server), which is rented. As running a wallet on a rented VPS increases the risk of coins being lost or hacked, cold staking can attach an empty wallet to a VPS to earn the rewards for them, all the while keeping their coins secure in an offline wallet, also known as a cold wallet.
There are benefits and drawbacks to this approach. For instance, if the stakeholder moves their coins out of cold storage, they won’t receive the rewards. But it is useful for stakeholders with a large sum of money who want to guarantee protection of their funds while supporting the network.
The CashHand Team has prepared its own server that is online 24 hours a day, 7 days a week, so that CashHand users can carry out their stakeouts.
The cold staking CashHand feature is very easy to set up, just follow the tutorial below.
Our cold staking address
the first step to configure your Cold staking CashHand is to enable Cold Staking by clicking on the snowflake as shown in the image below
once the Cold staking function is enabled; click on the Cold Staking button as shown in the image below.
Conform the image below, copy and paste our ColdStaking address and enter the amount of CashHand 2.0 you want to make available to ColdStaking
now click on the receive button and copy your receiving address as the image below
now paste your receiving address and click delegate
Now click on send and receive your staking income even when your computer is off, like this; saving time, and helping to reduce the electrical cost of the planet.