Implementation of Ethereum Deposit Functionality for Crypto Exchanges

Key Development Components

The system architecture utilizes multiple programming languages to handle different aspects of Ethereum transaction processing:

1. Wallet Generation:

   • Tool: Go-Ethereum (geth)
   • Command: geth --datadir [DATADIR] account new --password [file.path]

2. Keystore Parsing:

   • Library: Py-Ethereum (Python)
   • Function: Converts keystore files to private keys

3. Transaction Signing:

   • Environment: Node.js
   • Library: Web3.js

4. Network Communication:

   • Language: Ruby
   • Protocol: JSON-RPC wrapper

Transaction Processing Workflow

Step 1: Wallet Creation

• Generates secure Ethereum wallets for users
• Stores encrypted keystore files in designated DATADIR
• Requires password protection for security

Step 2: Transaction Monitoring

• Uses Etherscan API endpoint:
  http://api.etherscan.io/api?module=account&action=txlist&address=[address]

• Validation checks:

  • Confirms to address matches recipient
  • Verifies minimum 12 confirmations
  • Checks isError flag
  • Ensures transaction uniqueness in database

Step 3: Balance Management

• Integrated with Infura's JSON-RPC
• Balance check command:
  $eth_client.get_balance address, "latest"

Step 4: Fund Transfer Execution

1. Retrieve account nonce:
   $eth_client.get_transaction_count address, "latest"
2. Convert keystore to private key via Python script
3. Sign transaction using Node.js
4. Broadcast signed transaction:
   $eth_client.send_raw_transaction(raw_data)

Critical Technical Considerations

• All numerical values must be hexadecimal encoded
• Gas price and limits require careful configuration
• Chain ID must be specified for replay protection
• Comprehensive logging essential for audit trails

👉 Best practices for secure crypto transactions

FAQ

Q: How many confirmations are required for Ethereum deposits?
A: Typically 12 confirmations provide sufficient security.

Q: What's the purpose of converting keystore to private key?
A: Private keys are required for transaction signing, while keystores provide secure storage.

Q: Why use multiple programming languages?
A: Different languages offer optimal libraries for specific tasks (Python for key conversion, Node.js for signing, Ruby for RPC).

Q: How are transaction fees determined?
A: Gas price (GAS_PRICE) and gas limit (GAS_LIMIT) parameters control fee calculations.

Q: What infrastructure is needed to run this system?
A: Requires access to Ethereum nodes (either self-hosted or via services like Infura) and secure server environment.

Q: How are failed transactions handled?
A: The system monitors isError flag and implements retry logic where appropriate.