Translated by: MOS Translation Team – laplace33
In the Grand Live Broadcast on 21 January 2022, Miles Guo explained the meaning of hot wallets and cold wallets for digital currencies respectively.
A “hot wallet” can be understood as an online wallet, also called a “centralized wallet”, used for online access and transactions. Ninety-nine percent of fiat currencies held in banks and digital currencies currently circulating in the market are held in hot wallets that are circulating within a certain range. The disadvantages are that the funds inside are vulnerable to theft by hackers; they are unusable if servers are down; and in the event of a bank or digital currency issuer collapse, customers will lose a lot of money or even be wiped out.
In contrast to hot wallets, offline wallets are “cold wallets”, also known as “decentralized wallets”, or “hard wallets”, where digital currency is stored in a physical hard drive, similar to a safe deposit box for cash. This is the safest way to store money. When the number of coins in a hot wallet drops to a set value, a recharge mechanism is triggered and coins are withdrawn from the cold wallet. When the Space Internet is open, transactions can be made without the blocking of the CCP network.
The “cold wallet” is the first of its kind by Miles, and will integrate quantum computer encryption technology and biometric identification technology, and can even put the core data of the hard wallet on the moon or a satellite, so that the money in the cold wallet cannot be found, robbed or cheated, and in case it is lost, it can be recovered through the recovery mechanism, or fully covered by G insurance, so that the money will never be lost. Even if the CCP completely disconnects the Internet, transactions can be made between cold wallets, breaking the state monopoly of fiat currency that is regulated by others, making it impossible for the CCP to find its way back, and becoming the safest place to deposit money before and after the CCP’s demise.
Proofread by: Xiequyuan
Edited by: Xiequyuan
Posted by: Xiequyuan
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