Coincover Launches Staking Protection Technology

Coincover, a digital asset protection technology company, has announced the launch of the world's first staking protection technology.

Staking allows investors to put their crypto to work and earn a yield. However, the relatively new investment strategy comes with potential risks.

In staking their cryptocurrency, investors are responsible for validating transactions via their validator key. But should a firm be unable to use its validator key – which can be caused by anything from system failures, downtime or human error – the network penalises them and a portion of their staked currency is taken away. 

Coincover has developed technology to protect staked assets from any kind of outage or disaster scenario, which it does by providing staking organisations with an encrypted backup key.

Adam Smith, Chief Technology Officer and Co-Founder of Coincover, said: "This technology is an industry first. Lots of our clients were talking about the need for protection so we wanted to formalise our offer. Our mission is to make the entire crypto space safer and staking is a growing part of that landscape. Firms need systems in place to prevent losses, by having their validatior key backed up with a third party – in case things go wrong internally. Our back up provides a layer of security that internal technology simply can't match."

Rosie Leheup-Ffoulkes, Product Lead at Coincover, said: "Staking is a huge area of growth for crypto, which the Merge will undoubtedly supercharge. The ability to put your crypto to work and churn out a yield is a gamechanger, especially for those with a long position on the market. However, it's still a new form of investing, which most are exploring for the first time, without the systems in place to avoid getting caught on the wrong side of penalties. We want to move the industry in a direction that sees crypto companies pre-empt, plan for, and prevent risks like this before they cause problems and deter people from investing. This technology gives investors an extra layer of security, providing reassurance and building trust."