Staking is a popular reward system option for individuals who want to earn a passive income. Over the past few years, hundreds of Proof of Stake (PoS) coins have entered the market, offering a similar reward system. However, almost none have improved the traditional staking model. This poses a problem because there are few people are talking about the barrier to entry for new users.
For many, everyday users setting up a wallet and learning how to stake can be difficult. The NIX Platform offers the solution to this problem. As it allows users to utilise the ‘Leased Proof of Stake’ (LPoS) contract for a passive income without needing the knowledge or resources to properly operate a staking wallet.
Staking your NIX by yourself is a relatively straight forward process, but there are a few prerequisites to do so. First, you must leave your wallet open and unlocked to actively stake your coins. This means that your computer must be switched on and left running 24/7. It is also necessary that you monitor your wallet and update it when required to ensure it remains consistent with the current network consensus.
Alternatively, you can ‘lease’ your NIX to an LPoS merchant such as Cold Stake to stake your NIX on your behalf. When your leased coins find a new block, you earn a block reward which you can use after 201 network confirmations. You can also cancel your LPoS contract at any time.
The way that this agreement is enforced is through an LPoS smart contract. The smart contract ensures that you retain full coin ownership when you lease your coins. This means that your coins never leave your wallet and your private key is never shared. The smart contract also awards the LPoS merchant a percentage of the block reward as an incentive to provide the service.
At Cold stake we utilise the latest-gen Intel CPU architecture with SSD storage, to achieve the highest possible uptime. Our average uptime is 99.9999% with minimal downtime to update wallets and resync the blockchain if required. We also operate multiple servers in different geographic locations to ensure that our LPoS service is active 24/7.
By using Cold Stake, you don’t have to monitor anything or know a lot of technical jargon. By leasing your coins to us, you put them in the best possible position to get a good ROI and reap the benefits of staking.