Bitcoin Cold Storage

Cold storage is the term used in crypto currencies to store coins offline, i.e. without online systems having access to private keys. It’s like freezing something to keep it fresh and undamaged until you can use it again. In contrast, systems connected to the Internet are often referred to as „hot wallets“.

What does the Bitcoin revolution mean?

Why do you do the whole Bitcoin revolution? It’s about minimizing risks. While physical theft is of course possible, at Bitcoin it is much less likely than unauthorized access via the Internet. On the Internet, one is constantly exposed to the attack attempts of a large number of people, who attack many targets in different ways and often with unforeseen means. A classic thief is exposed to a higher risk, must be targeted, and how to protect against it is much more obvious. Using computers securely on the Internet is more complicated than locking the door or putting something in a safe deposit box. It is therefore advisable not to store Bitcoins online, i.e. in „hot wallets“.

It is only advisable to keep amounts that are required for regular Bitcoin payment transactions conveniently on smartphone or desktop wallets. But what options are there to keep your savings and long-term investments safe?

Software of the Ethereum code

If you want to save Bitcoin offline, you can of course get the idea to simply „pull the plug.“ The solution is usually a computer or smartphone disconnected from the Internet. In the simplest variant, you operate a regular wallet on a device that is separate from the Internet, so you can only receive Ethereum code on it at first. As soon as you want to transfer it, however, you have to be connected to the Internet again. To avoid this problem, there are wallets such as Armory, which make it possible to create a transaction on an online device, transfer it to an offline device, sign it there, and then transfer it back to the online device for sending. This means that the wallet remains „cold“ even when it is sent.

However, there are still many IT-specific attack areas. Usually the device is taken online at least for the installation of the wallet, whereby it is in principle susceptible to malware from the Internet. Even the transfer of transactions or software, for example via USB sticks, is not completely free of risks. In the case of software problems, the repair is usually extremely cumbersome and accompanied by additional dangers.

Paperwallets / Wallets made of steel
A popular variant is a so-called „paper wallet“ – the private keys on paper. The big advantage is that this solution is secure against malware – what does not insist on an electronic device does not need to be afraid of computer viruses. Common „paper wallets“ consist of a printed private key and the corresponding Bitcoin address (Public Key), both as text and as QR code. The two big difficulties with paper are how to generate the keys securely and how to output the Bitcoin securely later. Since manual generation is extremely cumbersome and tedious, software is usually used. However, this opens up different attack scenarios. If the software that generates the private keys is compromised, the coins are in danger. For example, malicious software could display predefined addresses instead of random ones for which someone else already has the private key and is just waiting to steal incoming bit coins.

Instructions often recommend downloading the source code for a web page such as bitaddress, transferring it to an offline device, checking that nothing has been tampered with (if you can), and then printing addresses and keys. To make this cumbersome step easier and safer, there are integrated solutions, such as the Mycelium Entropy, a kind of USB stick that generates Bitcoin addresses and can print directly from it without involving computers.

The second problem is that to send coins that are on paper, the corresponding private keys must be imported into software. This exposes them to the same dangers as a software-based solution, at least for a short time. If you are afraid that your paper wallets will burn, wash out or fade, you can of course also use material with better durability. Crypto Steel, for example

Ark Coin – Create your own Blockchain

Ark is a distributed platform designed to help people use more blockchain technologies. The goal of the development team is to spread the use of blockchains and make them accessible to the masses. Companies as well as private individuals should be able to create their own blockchains quickly and easily with the platform.

Ark Coin – What is this crypto currency for the Bitcoin profit?

The platform should provide everyone with the tools to create their own Bitcoin profit without a scam. Several programming languages are available, such as Python, RPC, JAVA, .NET, Go, PHP. The project is specifically designed for user-friendliness and should be able to be used by the masses. Using the „Push Button deployable Bitcoin profit“ a fork can be executed and a new blockchain can be created, which at the same time has the features of the mainchain. The development team wants to integrate as many other blockchains into the project as possible.

SmartBridges connect these blockchains to a network. The core platform is at the center. This acts as an intermediary between the individual blockchains and enables them to communicate with each other and trigger events between them. The chains will be able to interact and influence each other via the SmartBridges. This is something that no crypto currency has yet been able to do. As with the creation of new blockchains, the link should be simple. SmartBridges is automatically included in every new blockchain.

The consensus mechanism is the delegated proof-of-stake

The Ark crypto currency cannot be mined like many other crypto currencies. Instead, „delegates“ are chosen who take on the task of creating new blocks. The stake consists of the coins held in the Ark Wallet. One vote costs 1 arc, but the more coins you have, the more important that vote is. The delegates can then add new blocks to the chain and receive new coins as a reward. They can decide for themselves how they want to deal with them, for example by distributing some of them to the users. Delegates can also decide to finance projects with the coins or provide them for services. After each election, 51 delegates are appointed.

For each new block, 2 Ark’s are created. A new block is created every eight seconds. At the time of the launch of the platform, 125 million coins were generated. Transactions are subject to a fee of 0.1 Ark, in order to stand for election as delegate 25 coins must be paid.

By means of the platforms the use of physical cards as means of payment is to be promoted. A peer-to-peer interplanetary file system is to be added in the future. This will be able to process large amounts of data without having to burden the performance of the entire platform. In addition, an InterPlanetary Database, InterPlanetary Lined Data and a Web-to-Web-Serverless-Webtorrent will be added.