What is the hot wallet + cold wallet setup?
Digital coins that use masternodes usually require one dedicated server each, which contributes to the guarantee of decentralization and service stability. To increase the safety for coin holders, the cold wallet + hot wallet scheme which is an implementation of the compartmentalization protocol has been widely adopted. The cold wallet (your local wallet) stores the private keys that control the coins kept as collateral and to prevent undesirable access it does not broadcast its network address. The hot wallet on the other hand, takes all the exposure, since it will broadcast its networks IP to be able of process Instant Send and Private Send requests from regular users. Since the hot wallet has only the address to pay for the earned reward, all the information about the coins used as collateral is very secure.
It is clear that every hot wallet requires an online server with a broadcasted and dedicated IP to provide service to the network in order to get rewarded, and this requirement generates costs. The use of a VPS (Virtual Private Server) incurs an even higher cost, because VPS provides have a set of services, linked to privacy, that is not required to run the hot wallet. Thus, the offer of servers dedicated only to run the hot wallet can reduce the intrinsic masternode cost and benefit novel coin in which this cost is expressive.
Why does this service support multiple digital coins?
The dedicated IPv4 address requirement for each masternode has increased the shortage of IPv4 addresses. While this is not a concern for coins with high collateral, due to the server costs being diluted in the generated rewards, it can be a challenge for more inclusive projects that need a high number of masternodes to secure the network. This can be a deterrent for small investors. Also, the intense usage of dedicated IPv4 can even prevent new projects to flourish. Thus, in order to provide a healthier environment for multiple digital coins, and to foster coin projects to develop better features at a low cost, the Rapture project is offering its service for approved digital coin projects.
Why Coins use IPv4?
Despite of the wider availability of IPv6, IPv4 is widely implemented across the globe, which allows for access to features such as; InstantSend and PrivateSend services that Masternodes provide. Thus, the use IPv4 is necessary to make any coin project more inclusive and this need to a deep need of a better use of the IPv4 space.
Do I have to send my coins?
No, this is not a shared service and also do not support any coin that require assets in the hot-wallet. Every user is responsible for keeping safe its own coins in its own wallet (cold wallet) in a safe computer. We strongly suggest the use of a strong password (combination of number, letters, avoiding sentences published in books or any digital resource) with multiple backups.
Can turn off my computer and get rewarded?
Yes, our servers are up and running 24/7, thus, the hot-wallet is providing service the whole time to guarantee maximum reward. The hot-wallet service is paid to the masternode payee address and the respective rewards will be available in the cold wallet after a wallet sync.
Why this service provide the binding key?
To increase security and prevent the re-use of the same binding key, this service provide the random binding key to the user. This key is private and shall not be shared. Sharing this key may lead to the lost of the masternode slot.
Can I provide my binding key?
Yes, but this is not encouraged and lead to an additional enrollment fee. Our daemons are running 24/7 even without a binded masternode to permit a fast setup, hence, to change the binding key it is necessary to the administrator to change the hot wallet configuration and restart it.
Does the server needs to know my masternode binding key?
Yes, this key must be shared between wallet and masternode server to allow the daemon to pair to the masternode and provide services that will be rewarded latter. Once the user broadcast the the informations in the masternode configuration file to the network, the provide binding key will be used by the masternode daemon to match the configured IP and to perform masternode services (usually, instantSend and privateSend, but may vary according to the coin).
Is there any chance of losing my assets or rewards if someone stole my binding key?
No. The binding key does not give any access to your wallet. Despite that, if someone stole your binding key, it is possible to have a masternode overtake (the person will use your masternode), in this case, your masternode will change the status to “New Restart Required” and will not get any further rewarded until the key is changed and a new broadcast is performed (Restart the masternode in the wallet).
Is not the binding key used to move my coins?
No. The binding key does not give any access to your wallet. The private key that allow wallets to move your funds are generated when a new address is set. The address private key and the binding private key are not related. The binding private key is a random private key unlinked to any wallet address it is used as something similar as a “secret code” to pair the broadcasted masternode and the hot wallet that will provide service. A fair comparison are your home key and your car key, both are keys, both have a secret, but these are completely different in use, purpose and are not interchangeable.
What are the risk if someone hack your server?
In opposition to computers that are offline, any service that is online and has it IP published (as required to operate a masternode) has a mitigable chance of been hacked. Since our service does not operate any masternode or hot-wallet that hold coins in site, there is no risk of assets to get stolen. Indeed our servers do not keep any information about user and if happen a critical security event the binding keys can be replaced and the server fully reseted in minutes. We guarantee high security on our servers. The have a full firewall and only the daemons doors are open. Regular system ports as SSH and Web ports are closed as a security precaution.