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Self-Hosted Wallet Verification

Self-hosted wallet verification is the process of confirming ownership of a blockchain wallet address. This verification may be required before transferring virtual assets from a Virtual Asset Service Provider (VASP) to a non-custodial or self-hosted wallet. By implementing this process, VASPs can ensure that users are transferring assets from their centralized accounts to wallets they personally own.

CryptoSwift supports the following wallet verification methods:

  • Cryptographic Signature Proofs
    The user signs an off-chain message using their private keys. This signed message is then validated against their blockchain address to confirm ownership.

    CryptoSwift will securely validate the signature for supported blockchains — Bitcoin, Solana, and Ethereum-compatible networks (EVM chains) in accordance with CAIP-122.

  • Micro Transactions (also known as the Satoshi Test)
    A verification method where a small amount of cryptocurrency is sent from the destination wallet within a specified time frame — 48 hours. This proves ownership and control of the wallet’s private key.

    CryptoSwift continuously monitors supported blockchains — Bitcoin, Dash, Litecoin and Dogecoin — for the specific transaction and automatically sends a notification once the transaction is detected.

  • Wallet Screenshots
    Users can submit screenshots of their wallets as proof of ownership.

    Uploaded screenshots must be approved manually.

  • Self-Declaration
    A checkbox option allowing users to declare that they are the rightful owners of the self-hosted wallet address.

    This is the simplest, yet less secure, flow and is approved automatically.

CryptoSwift supports the following integration methods:

  • Wallet Verification Widget
    An all-in-one, easily integrable solution available as a web component or standalone app.

  • API
    A set of robust APIs designed to programmatically verify wallet ownership.

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