Custodial Solution

How to develop Enterprise Custody & Wallet Solutions using Walletkit.

Wallets are the main interface for a user to interact with a blockchain. They enable users to easily and securely receive, hold, and send crypto assets.

In order to manage crypto assets, one needs to utilize a custodial solution. Generally, a consumer may use a crypto wallet such as the mobile BRD wallet, but enterprises wishing to store their own assets or provide their customers with such ability, require custom and complex custody solutions. Traditionally, blockchain data is messy, low-level, and difficult to implement into front end applications. Furthermore, Custodial Solution development requires airtight cryptographic security and private key management. Otherwise, it can result in catastrophic monetary failures.

BRD, along with the Blockset API, provides an open-source, mobile SDK called WalletKit that makes developing your custodial products a breeze. To learn more about using WalletKit with the Blockset API view Using WalletKit.

Custodial Solutions without the Blockset API

Building a Custodial Solution from scratch (without Blockset) would require costly cloud infrastructure, dedicated Dev-ops personnel to maintain each node, specialized resources that are at the ground level of each open-source project, indexing tools for the blockchain nodes you are managing, custom services for aggregating and translating blockchain data, and a custom API for formating and calling blockchain data into web client context, and many other technical/operational considerations.

You would need to do this for every single crypto asset you wanted to manage.

In order to implement your own Custodial Solution you would need to:

  1. Build out and manage your own cluster of blockchain nodes.
  2. Develop a Blockchain proxy service that would be responsible for retrieving the raw data off those nodes.
    • Requiring specialized dev-ops and backup nodes
    • Dozens of functions
    • Messy, Low-level data.
  3. Build a Data Aggregator to take in that data into your own Database.
    • Need to constantly update and refresh your database to new Blockchain reorganizations
    • Find a solution for dealing with "stale blocks"
  4. Build a Data Translator in order to wrangle, refactor, and format the messy data into something that's more usable for business logic and web services.
  5. Build a custom API to pull data from the Database in order to populate the web client .
  6. Create custom services for any features desired such as indexes for getting address balances.
  7. Connect WalletKit to manage cryptographic functions such as digital signatures and address management, and assist in blockchain communications.
  8. Build workflow to get data out of WalletKit and into your blockchain proxy to broadcast transactions by exposing the endpoint, and finally sending them to the correct network.
  9. Setup consistent network monitoring such as "listeners" to see when the user's transaction has been mined.
  10. Connect to third-party services for blockchain analytics and market prices.
  11. Design and Develop the front-end Web Client for the Custodial GUI.

Custodial Solutions with Blockset

Blockset takes care of all the expensive cloud infrastructure, node management, custom services, specialized dev-ops, and more, so that dealing with blockchain data becomes simple and accessible. The Blockset API takes the low-level blockchain data and gives it to you in an application ready format.

Blockset takes all the backend hassle of dealing with blockchain data and turns it into a simple HTTP request.

To implement a Custodial Solution with Blockset, you would simply need to:

  1. Build a small server which houses your own business logic and talks to the Blockset API to receive application ready blockchain data.
  2. Connect WalletKit to manage cryptographic functions such as digital signatures and address management, and assist in blockchain communications.
  3. Create any custom services or features desired for your project.
  4. Design and Develop the front-end Web Client for the Custodial Solution.

In conclusion

If you want your customers to be able to receive, transfer, and store crypto assets, you will need to build a custom Custodial Solution. Doing this traditionally and from scratch would take extensive custom hardware and software development, requiring you to hire specialized Senior Dev-ops and maintain continuous infrastructure updates and management. Now, with Blockset's API and the WalletKit SDK, all that is taken care for you, so you can focus on building great applications for your customers.

Contact us for any help and questions regarding Blockset implementation.

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