BitcoinPoS, a new “peer-to-peer electronic cash system,” is introducing what it calls cold staking, according to a press release from the group.
This means they’re trying to offer a proof-of-stake process on the Bitcoin blockchain network. The release describes cold staking as the following:
“If users are familiar with the concept of staking, they will be surprised to find out that it got even better. Besides easily getting a passive income with the Staking Pool feature, they can now be protected from hackers at a higher level.”
Essentially, cold staking takes two wallets: one to hold the assets, and the other to stake them. This not only increases the security of one’s funds but also allows them to stake while using less energy than mining, of course.
The release breaks this process down a little more, stating:
“But staking demonstrated that passive income can be easier, more economical, and more beneficial. Thus, depending on users income, they can be rewarded in coins, and the new Cold Staking comes along with improved security and minimized risk.
The cryptocurrency domain is continuously evolving, gaining more and more power at a worldwide level.
The idea of coins replacing the fiat currencies is not a fantasy anymore. The constant updates prove that people could make trades without depending on banks or the government. This is what people wanted for decades – financial independence.”