Reliable Blockchain Custody
Martin KreitmairChief Executive Officer, Tangany
Reliable Blockchain Custody
White-Label B2B Made in Germany
The development of a white-label blockchain custody solution is a very challenging mission. It requires to tackle large amounts of different topics such as stability, usability, security, regulation, and scalability. Tangany’s mission is to address all those challenges in order to create a stunning and highly usable product.
This blog article will give you detailed overview of all technical topics.
These goals come with the need for numberless tasks to fulfill our promise. For stability, we run hundreds of automated tests every day. Testing all corners of our product for proper functionalities. The KPI behind that approach is measured as ‘code coverage’. Code coverage describes the percentage’s value of how our solution is monitored by all the different tests. We aim for at least 99% and that is exactly where our KPI is pointing at. This guarantees that the solution is fully and continuously tested to ensure flawless execution.
As our product suite is designed as Software as a Service, this generally comes with the ability of high scalability. This is what we had in mind when the product was initially conceived. We asked ourselves, how do the engines need to work so that we are able to maintain best-in-class stability and reliability. That is exactly why we decided to move into cloud resources with a serverless approach. We avoid bottlenecks at all times. We ensured that no matter whether one or hundreds of clients are using the service parallel, the response times are always the same.
For that, our product is able to automatically scale up and down upon requirement. This includes additional nodes of blockchains like Bitcoin and Ethereum.
Not too long ago a client requested to create more than 20,000 wallets for his users in bulk. Bulk means in parallel and as fast as possible. Even for our engines quite a lot of work. Yet, all those 20,000 wallets were successfully created in no more than two days. And all other clients didn’t notice a thing as the system was stable at all times.
IT Security is a very sensitive aspect. Our security protocols include a very strong IT security paper with two digits amount of pages. It covers not only technical but also organizational and processual aspects in accordance with regulatory requirements. It highly origins from ISO 27001.
We also work closely with external partners to regularly validate security from outside and to have a strong security plan in place for all scenarios.
Usability comes with simplicity. Both, our API and our white-label wallet are designed with ease-of-use in mind. We also take care of as many technical requirements as possible. Ethereum for one struggles with the network fees if you try to send only tokens or if you try to send a large number of transactions from one wallet in a short time (the so-called ‘nonce issue’). Bitcoin, on the other hand, is quite limited with features and requires the sender of a transaction to collect the desired amount of Bitcoins manually.
All those obstacles are targeted by our tech team to provide a solution for our clients. They often don’t even know that we take care of such things in the background. That is exactly what usability means to us.
Only if we perform on all named topics, we are able to provide reliability. Reliability sums everything up and defines the quality of products.
In more detail: we regularly test our solution against a group of peer products with similar functionalities (blockchain transactions, creation of wallets, etc.). We won’t spoil the peer results for reasons of objectivity. Hence, we will focus on our own values in those tests.
How long does it take to receive the request for a transaction (sender, recipient, amount, type of token/coin), to create it, to get it signed with the associated private key and to submit it via node to the regarding blockchain?
Well, no longer than 1.5 seconds on average for Ethereum and even fewer for Bitcoin with 1.1 seconds. That is the lowest value of all tested solutions.
We have — obviously — to keep in mind that it takes also some time for the blockchain to execute the transaction by mining it into a block. For Bitcoin, this can be up to 10 minutes and for Ethereum up to 12 seconds. However, this is outside of our influence and needs to be optimized in the blockchains itself.
Large Amount of Transactions in a Short Time Period
There is one tricky thing about Ethereum, called ‘nonce’. Every transaction gets its unique nonce which is executed chronologically. Now, what happens if a wallet sends — let’s say — 30 transactions within seconds while Ethereum only creates new blocks all 12 seconds? Well, that is a good question and exactly what we have tested.
The aim was a rate of 100% successfully executed transactions. And besides, that we saw quite concerning results for the peer group, our engine management to deliver. All 30 transactions were mined on the blockchain.
Bitcoin Wallets with a large History
That was quite challenging and required a lot of time, fruits, and discussions. Bitcoin has this little feature that requires you to manually construct a transaction. It’s like having a wallet for cash and every time you pay with it, the change will be put into a new wallet. Now let’s think this through with hundreds or even thousand cash payments: that is a very large number of wallets. And you have to decide which of those wallets are used for the next payment. This can drive algorithms definitely nuts!
So we tested wallets with more than 5,000 transactions in history. That is enough even for highly used wallets. By the way, our initial algorithm fully stopped working with wallets that had 300 transactions. However, our latest algorithm works stable even with 5,000 transactions in history. And the response time is still quite impressive with about 3.5 seconds.
We tested a lot of scenarios and will do so in the future. Reliability is not just a word to be claimed. It’s a mission that enforces an organization to fully dedicate itself to it. Many things need to be done and some are even contrary to each other. We at Tangany align our processes and streamline all new updates and features to it. All for client satisfaction.
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