I recently set up a stake pool, and I used the approach of creating all the following on my air-gapped, offline computer with USB backups
- stake key pair (verification/signing)
- stake address (associated to stake verification key)
- payment key pair (verification/signing)
- payment address (associated to payment verification key and stake verification key)
I’m funding the payment address with my pledge amount. Since it’s stored on the air gapped, offline machine and some USB backups, it feels like they are essentially the same as a Hardware wallet except lacking the ability to recover from a seed phrase.
In practice, are most Stake pool operators using the approach above or something else?
E.g., does anyone manage the pledge amount using a wallet address and private key on a Hardware Wallet.
E.g. does anyone create a seed phrase for the payment address/keys kept on air gapped machine & backup USB devices
What is ideal way?
Thanks for your thoughts.