One of the challenges of running a crypto-related business is the sheer volume of data and account management tasks that can result. For example, say you set up and launch a crypto exchange platform that thousands of customers use every day to buy, sell and trade multiple different cryptocurrencies. As the exchange, you’ll be receiving a fee for providing that service.
This means managing thousands of deposit addresses all needing security.
Luckily with Crypto APIs’ Blockchain Automations, crypto businesses can easily generate as many hot wallets as they need to receive coins or tokens, and from them automatically forward them to one main address.
Blockchain Automations not only simplifies account management, but also security since keeping your funds in thousands of different deposit addresses is a major security risk.
These endpoints generate new deposit addresses (one for coins, and one for tokens), and allow customers to indicate a toAddress. This is essentially the main address or destination that all of the coins or tokens received by the generated hot addresses should be forwarded to. This toAddress can be a cold wallet or a custodian with insurance.
Crypto APIs’ Blockchain Automations then work by monitoring the hot deposit addresses for incoming coins and tokens. Once received, the coins and tokens are automatically moved to the previously specified target address.
No matter what cryptocurrency or blockchain you’re working with, Crypto APIs Blockchain Automations work in exactly the same way for absolutely all supported blockchain protocols in our product suite.
After setting up the automatic forwarding functions, customers can also make use of other endpoints to further simplify the management of their wallets.
The List Coins Forwarding Automations endpoint gives customers an overview of all of the forwarding automations they have set up for coins. The details returned can include the specific time/date when the automatic forwarding was created, the fee priority that was set, the address forwarding the currency, and more.
Through the List Tokens Forwarding Automations endpoint customers can get a list of all of the tokens forwarding automations they have in place. Currently, this endpoint only supports fungible tokens (ERC-20). The list can include details such as the specific time/date when the automatic forwarding was created, the fee address, fee priority, token data and more.
Through this endpoint customers can add Automatic Tokens forwarding functions to an already existing fromAddress. The Add Tokens to Existing fromAddress is a little different from the Create Automatic Tokens Forwarding endpoint.
In the “create” endpoint the fromAddress is generated each time, but the Add Tokens endpoint allows adding an automation for another token to the same fromAddress.
The fromAddress can be used as a deposit address and any tokens received by this address will be automatically forwarded to the assigned toAddress.
When creating the coins and tokens automatic forwarding or adding tokens to an existing fromAddress, a callback subscription can be set. This means customers can receive a notification to a specified URL when an automation has occurred.
With the Get Fee Address Details endpoint customers can obtain details about an automatically generated fee address. The details returned can include the balance of the fee address, the fee spent for forwarding the tokens, and the minimum transfer amount of the currency in the fromAddress that can be allowed for an automatic forwarding.
Crypto APIs Blockchain Automations allow businesses to consolidate funds and simplify wallet management. Automating the forwarding of coins and tokens to the main address you have set, removes the need of doing multiple transactions for small amounts of cryptocurrency, and paying fees each time.
Since blockchain fees fluctuate significantly and you never know for certain when funds will be received or transferred with the automations, it’s impossible to set an exact fee.
With Crypto APIs, you don’t have to worry about getting stung by insanely huge fees. Our Blockchain Automations have an additional feature that allows the setting of a fee priority.
Business customers can select from Slow, Standard, or Fast to have greater control over the fees to be paid on the blockchain. Crypto APIs’ fee calculations are based on mempool data, which means our fee recommendations are more accurate than fees based on previously mined blocks.
Another way Blockchain Automations allows businesses to optimize transaction fees is by setting a minimum amount to be collected before the automatic forwarding rule kicks in. Crypto APIs will also not forward just any amount from a wallet automatically. Our bot will wait until the minimum amount is met, and only then forward all the funds as a single transaction.
Blockchain Automations is one of those products that can be beneficial for any crypto-related business that wants to simplify their account management or save money on transaction fees.
From newly launched dApps to well-established crypto trading platforms, crypto wallets, and crypto tax and accounting firms, Blockchain Automations can significantly reduce time-consuming and costly processes by automating transactional and repetitive functions.
Blockchain Automations is just one of the powerful tools from our blockchain product suite which includes a quantum secure MPC-based Wallet as a Service, live and historical blockchain data, and webhooks. With just one integration, customers can make use of all of the unified endpoints.
What this means for businesses, SMEs and organizations is a frictionless way to interact with cryptocurrency and digital assets across multiple blockchains.
Our mission is to empower greater blockchain adoption by making the implementation and management of blockchain technology and infrastructure easier, more affordable, and scalable.
To find out more about how Crypto APIs can help streamline your internal transactions, simplify wallet management, save you money on transaction fees and more, contact the team today.