Offline Staking in QTUM , a new way to generate yields without risks
By Inkarias - 2020-09-30
With the current craze going toward DeFi-based projects, Qtum (QTUM) has chosen to offer a globally more robust value earning mechanism via offline staking without any significant risks to user funds. Offline staking on Qtum follows a major protocol upgrade at the end of August going along the unchanged vision of the team, protect the investors and the community against the always-more inventive hackers and scammers.
With Ethereum (ETH) 2.0 still in the testing phase, projects like Qtum are seizing the moment to gain even a greater share at a certain point. As more blockchains move towards full Proof-of-Stake (PoS) consensus, platform devs are going to be putting more effort into incentivizing greater adoption to improve the network effect of their respective blockchains across the globe.
Offline-staking , an innovative solution to protect funds
Apart from the security benefits, offline staking is becoming more popular owing to the significantly lower technical barrier. Instead of the hassle of setting up a dedicated network node with all the complex technical knowledge required, offline staking instead allows token holders to stake their cryptos to an already existing node operator simply in a few steps. Unlike other projects using online staking, the method chosen by QTUM enables token holders to stake their holdings and assets directly from their cold wallets. This method offers greater security protection for crypto owners as the staking process occurs within an « offline wallet ».
Finally, with offline staking, the crypto tokens remain domiciled in the user’s offline wallet. Granted such wallets are compatible with the network’s staking delegation protocols, token owners need not surrender the custody of their coins to participate in staking as is the case with online staking. This is overall a great value-added for investors looking to participate in a long term vision to generate a passive income through crypto.
Offline staking information can be read on the official QTUM website at https://qtum.org/en