Blockchain application platform Qtum will soon undergo a hard fork enabling network participants to stake and earn rewards from tokens held in offline wallets.
- Announced Tuesday, the fork – when the blockchain divides to provide an alternative version with different features – will usher in a new code release at block 680,000, expected Aug. 28.
- The upgrade will enable offline wallet address owners to delegate their blockchain-based holdings – technically termed unspent transaction outputs (UTXOs) – to an online node operating Qtum's proof-of-stake (PoS) consensus.
- PoS is a distributed consensus mechanism that allows users to vote on governance decisions and support the blockchain by dedicating, or "staking," tokens, earning them network fees as a reward.
- Qtum previously only allowed participants to stake tokens online via a full node, but participation was limited by users who did not want to, or could not, run a full node.
- Offline staking is expected to increase participation, while also enhancing Qtum's "democratic, distributed, and secure" functionality, according to a statement.
- The fork is being supported by cryptocurrency exchanges including Binance, Huobi, OKEx, Coinone, CoinDCX and Gate.io.
- Qtum launched in 2017 as a hybrid blockchain featuring aspects of Bitcoin and Ethereum to provide smart contract functionality for distributed app developers seeking an alternative platform.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.