Topic: [PPC] [PROPOSAL] PPCoin Online Stake Safety - page 2. (Read 10043 times)
Awesome! Any time frame for rollout?
This is a key piece of the puzzle. There needs to be provision for the outsourcing of this to third-party "stake miners" who will pay you a certain portion of your stake rewards in exchange for being custodians of your stake generation capability without actually having access to your offline cold storage keys. Obviously if you transfer your coins they wouldn't be able to generate stake with them anymore. The fact is that while plenty of geeks don't mind keeping a computer online all the time some of us aren't into running server farms.
brilliant!!!!!!!!!! 
Abstract: A proposal to relieve stake minter the risk of running online hot wallet.
Description: This proposal is simpler than the previous dual-key proposal [1]. A special transaction type called cold-locked transaction is introduced so that a designated spending address is specified in its first output. Protocol enforces that, spending of any of the outputs in the transaction must be sent to this designated address, or to itself (for stake generation purpose). When stake is generated, the stake transaction is also cold-locked and the designated key in stake must match all designated keys where all the inputs come from.
How hot wallet is protected:
By providing a cold-wallet address as the designated spending address in cold-locked transactions, stake minter can now run their entire balance online in a hot wallet to earn 1% annual interest with minimum risk, while providing maximum security to the entire network. This would allow even the exchanges, pools, and other online wallet providers to participate in network protection without risking public assets, and reduce fees or even pay interest to its users.
For public review and discussion.
References:
[1] https://bitcointalksearch.org/topic/ppcoin-offline-coinstake-creation-115608
Description: This proposal is simpler than the previous dual-key proposal [1]. A special transaction type called cold-locked transaction is introduced so that a designated spending address is specified in its first output. Protocol enforces that, spending of any of the outputs in the transaction must be sent to this designated address, or to itself (for stake generation purpose). When stake is generated, the stake transaction is also cold-locked and the designated key in stake must match all designated keys where all the inputs come from.
How hot wallet is protected:
By providing a cold-wallet address as the designated spending address in cold-locked transactions, stake minter can now run their entire balance online in a hot wallet to earn 1% annual interest with minimum risk, while providing maximum security to the entire network. This would allow even the exchanges, pools, and other online wallet providers to participate in network protection without risking public assets, and reduce fees or even pay interest to its users.
For public review and discussion.
References:
[1] https://bitcointalksearch.org/topic/ppcoin-offline-coinstake-creation-115608
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