Conceal Cold Staking vs. ‘Masternodes & PoS’

Conceal Cold Staking

- Privacy protection is truly decentralized (running at the protocol level);
- Not necessary to run a node to engage in cold staking;
- No minimum staking amount;
- No hardware investment;
- No electrical bills;
- No operating expenses;
- No need for advanced technical skills;
- Requires no maintenance;
- No offline penalties. You will get rewarded even with the wallet offline;
- Extended security because wallet stays offline and encrypted;
- Stake and reward never leave your wallet;
- Governed by simple own smart contracts;
- Fixed ROI, you know your rewards from the moment you lock your coins and the deal is sealed with a smart time locked contract;
- Shorter staking periods;
- More inclusive;
- Seamless.

PoS Staking

- Staking requires hot wallet and this wallet needs to remain unlocked. While it unlocks only for staking purpose there are some potential risks involved;
- Penalties for being offline: Your wallet needs to be online in order to earn stake rewards;
- Operating costs like hosting, electrical bills, bandwidth and maintenance to run a node;
- Due to large number of stakers from time to time you’ll get orphan blocks;
- Payout frequency is difficult due to high competition on the network predicting profitability;
- Low rewards.

Masternodes Staking

- Privacy protection depends on trusting in a 3rd party (masternode operator). Technical savvy people cold run masternodes to trace transactions on masternodes’ chains;
A masternode is NOT fully decentralized. Governments could run masternodes to spy, taint coins and trace funds of their own citizens;
- High minimum deposits because it requires a fixed amount as collateral. These amounts are usually large. Not everyone can easily afford such large amounts;
- Additional hardware investment needed;
- Requires a dedicated IP address and that is an extra cost;
- Difficult setup. Stakers must configure and run a node. Technical knowledge is required in order to maintain it too;
ROI is not guaranteed and is not constant
- High risk of being targeted and suffering attacks because once people have your physical IP address they can get a look at where your masternode is being held with geo-ip mapping tools and easily track it down;
- Operating costs like hosting, electrical bills, bandwidth and maintenance to run a server/node;
- Offline Penalties: penalty if your Masternode goes offline and the penalty is delay in payments which will result in affecting your ROI;
- Typically longer staking periods;
- Serve as a utility to the network that most users don’t understand;
- More exclusive.


It should be fairly evident that cold staking is cheaper, offers better privacy protection, is more flexible and has lower risk than running a masternode.

Additionally, it engages all users of the crypto community willing to participate and doesn’t exclude anyone based on their ability to run specific hardware or stake higher amounts.

Conceal Cold Staking does not require stakers to install, run and keep an online node. This renders it easier for users compared to traditional Proof of Stake protocols. As a result,Cold Staking is a more effective mechanism for creating a scarcity of coins in the market, raising prices, attracting investors and increasing the network effect.

Conceal Cold Staking provides an appealing incentive to hold your coins and eliminates the barriers to entry that are inherent in master nodes.

Don’t know what staking is? You don’t need to. Conceal is a decentralized bank in the blockchain with deposits and investments paying interest rates like a normal bank but without involvement of financial institutions and powered by 100% open source code, where you own the keys for your money. No one, beside you, can access, freeze or seize your funds. In fact, no one even knows how much money you have in your bank because all Conceal Network’s transactions are untraceable and anonymous. Basically speaking, YOU ARE YOUR OWN BANK.

Visit Conceal.Network to know more.