Should I use electrum if I want to manage hundreds of btc addresses?

OldFaceAndre

newbie

Activity: 9

Merit: 0

Quote from: Quickseller on April 16, 2017, 01:07:41 AM

If you are going to do this, then I would advise you to run your own (private) electrum server that is capable of handling this kind of workload.

Your electrum client will be able to confirm that that any transaction data returned by an electrum server will be accurate, however you will need to place trust in the electrum server in a sense that they will fulfill your request for data, and if they do not, then your customers could be negatively impacted. Within the electrum servers that public limits, the highest limits among electrum servers generally tops out at 10,000, and I would recommend to create a new electrum wallet when you approach this number of received transactions.

If you run your own powerful electrum server, you can take steps to prevent the general public from utilizing your server's resources, and it may be able to handle requests of this magnitude.

I would also point out that attempting to run *any* wallet software that is monitoring 100,000 addresses will require a very large amount of resources.

My business is long way from 10,000 transactions. We're talking about few hundred tx's per month. I assume that this kind of load is acceptable? I don't mind creating a new wallet every month too.

Quickseller

copper member

Activity: 2996

Merit: 2374

If you are going to do this, then I would advise you to run your own (private) electrum server that is capable of handling this kind of workload.

Your electrum client will be able to confirm that that any transaction data returned by an electrum server will be accurate, however you will need to place trust in the electrum server in a sense that they will fulfill your request for data, and if they do not, then your customers could be negatively impacted. Within the electrum servers that public limits, the highest limits among electrum servers generally tops out at 10,000, and I would recommend to create a new electrum wallet when you approach this number of received transactions.

If you run your own powerful electrum server, you can take steps to prevent the general public from utilizing your server's resources, and it may be able to handle requests of this magnitude.

I would also point out that attempting to run *any* wallet software that is monitoring 100,000 addresses will require a very large amount of resources.

ranochigo

legendary

Activity: 3038

Merit: 4418

Crypto Swap Exchange

Quote from: ?? on ??

You would be better served by monitoring those addresses yourself, directly from the blockchain, therefore, bitcoin-core is for you. Unfortunately, bitcoin-core doesn't give you (yet) the advantage of generating addresses from a single set of Seed words. However, Bitcoin-core does allow you to generate thousands of addresses - the draw-back is that they are just random - so you have to make a backup of all the private keys - which is not that bad, if you are disciplined enough...

Actually, Bitcoin Core starting from 0.13 is a HD wallet. It doesn't support HD mnemorics so its just a string of letters. You do have to back it up if you encrypt, unencrypt or change the password of the wallet. Otherwise, a backup of wallet.dat will suffice.

Rather than manually copying the addresses, you can find a plugin which allows you to insert your master public key. This will allow the plugin to automatically rotate the addresses while keeping your masterprivatekey secure.

OldFaceAndre

newbie

Activity: 9

Merit: 0

Hello,
I have an idea for service that requires using a lot of btc addresses. It would work like this, i copy my newly generated receiving addresses to a .txt file which is uploaded on my server, and my service automatically rotates/checks which addresses have already been used, if unused, gives the address to customer.
Now, would you recommend using electrum to generate and handle those addresses? I am thinking of increasing the default gap limit (20) to few hundred - thousand, and then printing receiving addresses via console, copying them over to my receiving .txt file uploaded on the server.
Is electrum safe to use? What backup precautions should I take (I assume, copying the encrypted .dat wallet to offline storage, and writing down my seed somewhere safe while running a safe OS like ubuntu?) Anything else, any tips?

Topic: Should I use electrum if I want to manage hundreds of btc addresses? (Read 488 times)