What is cold staking?

Electra Protocol is a proof-of-stake blockchain featuring staking options. Cold staking is an extension of “normal” staking and is planned to be implemented for Electra Protocol. Traditional staking needs the wallet to be online and unlocked to start to stake. Cold staking is different.

The planned cold staking functionality for Electra Protocol is for the user to create a new wallet and send an “image” of coins secured by the upcoming cold staking solution. This wallet is different than the main wallet and can be hosted in a virtual private server or any device. The strong point of this process, the funds in this specific wallet can not be spent, even by a hacker having access to this wallet. Only the “creator” of this cold staking wallet can spend the funds using his main wallet.