Self-custodial, widely known as non-custodial wallets, are cryptocurrency wallets allowing users to store, manage and transact their digital assets. As their name suggests, self-custody wallets are set apart from custodial wallets in terms of who is in control of users` private keys. In non-custodial wallets, third parties are eliminated and wallet owners are the only party that possesses complete ownership of the wallets and can grant access.
Non-custodial wallets are secure in a sense that all wallets funds are not being available or cannot be accessed by service providers such as custodial platforms, exchanges and other types of businesses. This type of wallets comes in different forms, including software wallets for desktop and mobile devices, hardware wallets and browser extension wallets.
The non-custodial wallets are one of the key services in our blockchain infrastructure suite. We are offering open-source Node.js software tool which guarantees the provision of control over master private keys, master seed and mnemonics to our clients and our clients` clients. It is required to use the open-source tool locally to reduce and leak of sensitive data
The hierarchical deterministic wallet or HD wallet that we offer is privacy-focused and can be used for address generation, key management and recovery. The HD wallet allows generating numerous new addresses deriving from a root seed (long string of data). This type of data is formatted into 12-24 words seed phrase or mnemonic phrase to improve the user experience and easiness.
A master key pair, also known as an extended private key (xPriv) and an extended public key (xPub) are automatically generated by the seed in a structure which resembles the structure of a tree. Visualization and additional information on HD wallets is available in our Blog section.
Crypto APIs HD wallets allow signing transactions locally without having to connect to a network connection. Our product suite also offers different endpoints for syncing your HD wallet (xPub, yPub, zPub), getting fee recommendations to know exactly what the will be the cost for your TX, preparing transactions, deriving wallet addresses, broadcasting locally signed transactions and more.
Despite that Crypto APIs services are aimed at businesses, and we are focusing on the B2B service delivery, we are indirectly affecting the B2C delivery of services of our clients. This is because our solutions empower our clients` services and allow them to provide B2C to their customer base.
Our clients are using Crypto APIs non custodial solutions for a variety of reasons, most of which are directly linked to the benefits that our services provide - we help you save time, money, efforts and unnecessary hassle.
For instance, businesses that make a lot of transactions may find it difficult to keep track of all incoming and outgoing transactions that were placed - this activity is essential for accounting purposes and all businesses are conducting it over regular periods of time.
By using HD wallets, you can derive countless addresses that are organized and stored in one place, simplifying bookkeeping. This allows you to easily monitor and manage specific or all transactions.
Non-custodial wallet syncing is crucial in order to update the wallet`s data with the latest blockchain information. Once you open your wallet, it will need to sync with the blockchains to fetch the most recent transaction history and balances for all addresses associated with that wallet.
In general, the initial sync process is instant, because the new non-custodial wallet does not have any derived addressеs or transactions. However, in some cases syncing may take some time, especially if there is a significant amount of addresses or transactions in this wallet. Еxpected longer processing of data is in cases when clients of our clients already have HD wallets and would like to reduce their cost of management.
Keeping your wallet data up to date is essential to maintain security of your funds as this will allow you to accurately reflect your current balance and enable you to make new transactions.
Depending on the nature of the business, the organizational goals, the purpose of the wallet and etc., non-custodial wallets can be used across nearly all crypto and blockchain market niches.
Many of our clients that are using non-custodial wallets are running exchanges, hardware wallets, accounting companies, digital banks, loans and payments services companies, cold storages and others.
For each business, the use case may slightly vary. If you are unsure how you can benefit from our non-custodial wallets, you can get in touch with our team, and we will provide assistance and guidance to help you make the right choice.
As an innovator in this field, Crypto APIs is proud of the provision of unified endpoints for synchronization of HD wallets, broadcast of transactions, the ability to sign transactions offline as well as other functionalities that we provide to our clients.