Hi, I am new to Incognito and just wanted to ask how I can stake Bitcoins using the app, for an example? Will staking be available using the web based wallet of the Incognito wallet. And what about not your keys, not your coins phrase, in regard to staking with Incognito? What solution is or can be implemented to assure the users they own the keys and not any third party?
Incognito wallet and staking ?
Hello @qapofa and welcome to the Incognito community,
Staking can be done in 2 different ways on the app. Either via Provide (More tab > Provide) or via the Earn tab.
Provide allows users to provide single-sided liquidity, however, this is a feature offered by Incognito and therefore is centralized by design. Funds are sent from your wallet to the pool that you are providing to. From there those funds are either used to provide liquidity or spin up vNodes to help strengthen and secure the network. Interest rates in provide can vary unless using the locked-in periods.
The earn tab allows users to provide two-sided liquidity and is on the blockchain so not centralized.
When the web wallet is available we plan to eventually have all app functionalities available. Due to the complexity, this most likely will be done in phases with not everything available at the very beginning.
All source code for Incognito’s blockchain, app, bridges, etc are open source and can be found and reviewed on our GitHub: https://github.com/incognitochain/
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@Jared
Thank you for the detailed explanation.My question is let’s say I am a Bitcoin miner and I am looking to stake my Bitcoins. Why would I deposit my bitcoins in an Incognito wallet and not in a DeFi wallet? If I have understood correctly the interest is paid in your own coin and not in the cryptocurrency which was deposited. That seems like a major disadvantage. Note that I am looking to help the Incognito community.
Privacy is key point of differentiation.
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Please have a look over our whitepaper: whitepaper.incognito.org
Incognito is a privacy ecosystem. We also offer very competitive rates when compared to DeFi platforms and services.
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Thank you , the white paper helped. I did want to ask can funds stored with the Incognito wallet same as with the centralized exchanges and wallets where regulators can decide at any moment to freeze accounts belonging to people.
Incognito’s blockchain is decentralized across 2119 pNodes and vNodes
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Sounds great, one more thing . What if I already have a cryptocurrency which was bought on a exchange using my ID . Doesn’t my anonymity stop there , yes I can send the funds to a Incognito wallet but even with mixing the coins aren’t anonymous or I am wrong ?
They are working on blockchain decentralization but in the current state, the community nodes are only mirrors of the centralized nodes. Later this year they will move block consensus to the decentralized network of pNodes and vNodes. As for any funds you have shielded, those funds are held by the Bridges which are typically operated by the Incognito team.
So the bottom line is that to access your shielded coins, the transaction needs to go through the Incognito team nodes and bridges. As long as they can operate, your funds are safe. Maybe @Jared can answer what protection the Incognito organisation has from government and regulator involvement.
As for freezing individual peoples accounts inside the Incognito network. I find it very unlikely, as there is no way to track the transactions and what wallet belongs to whom inside Incognito.
Depends on what you mean. Your anonymity is only guaranteed inside the Incognito network. Any transaction outside of Incognito (shielding and unshielding) is subject to the normal crypto forensics of connecting addresses, amounts, etc.