Please can you tell me the benefit of a cold node

Question

I understand that the multichain cold node is for offline purpose in a blockchain but how does it contribute to the blockchain in any way if its offline by not participating in consensus or mining etc. What is its benefit?

Answer 1

The point of a cold node is to act as a repository for private keys that can sign transactions, on a computer which is not connected to the Internet and therefore cannot possibly be compromised by any kind of hack or software vulnerability. This keeps the private keys safe to a level that is not possible on a computer which is connected to the Internet. More information about the MultiChain cold node is here:

https://www.multichain.com/developers/cold-nodes-wallets/