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Esp Zodiac.


100% satisfied

Hello guys,
I was just thinking about controlling BTC transactions on own server/website (deposits/withdrawals + generating addresses etc)

What the fuck? He's not even paying the mods on a site that rakes in profits??

That's outrageous!

I already said it, you get a list of UTXOs and you can spend as many of them as you want.
Each bitcoin transaction has an array of inputs and an array of outputs that have to have at least one item in them (one input and one output) but you can create a transaction with for example 10 inputs and 4 outputs.

You don't need a watch only wallet first, it is an option to maximize security.

You don't need TXID you need UTXO (Unspent Transaction Output) which contains [received] transaction hash, index of the output in that transaction, amount of the output in satoshis and finally the pubkey script (that should correspond with the address you are spending from).
You get a list of them that belong to your address and spend as many of them as you want granted you don't violate any standard rules (ie. don't end up with a huge tx).

You don't need a watch only wallet first, it is an option to maximize security.

Electrum gets a list of UTXOs for your address and then it creates an unsigned transaction that has everything expect signatures set (such as inputs and outputs) then puts it in a file that you can transfer to cold storage for signing. The cold storage reads the file and signs the transaction (not the file) then you can transfer the signed transaction in that file to the online watch only wallet to broadcast.

You select the inputs that you'd like to spend in the transaction. Get the TXID and the output index of it for the transaction, for which the output index is the order for which your output is in within that specific transaction.

Electrum obtains the unspent transaction output and displays it to the user in the GUI for them to choose and construct an unsigned transaction for it to be signed, that is the purpose of a watch-only wallet.

If you are talking about running a full-node, you have to download and verify the entire Bitcoin blockchain. After that, you can use pruned mode that requires only a few GBs of storage on your hard disk.

But Electrum is an SPV client, so you don't have to worry about storage limitations.
And if you decide to go for a payment processor such as BTCPay Server, you would also not be dealing with full-nodes.

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Edit: While going to work, I thought about what I said. So I did some research and it indeed looks like you do require a full-node with BTCPay Server, but it comes with the installation. Sorry for giving you the wrong information initially.

Have you considered using a non-custodial payment processor on your website to accept bitcoin payments?
On this list you will see both hosted and non-hosted services that you can try out.

BTCPay Server would be an obvious and recommended choice for many, but it requires a bit of time to set up.

But i think that any wallet password that has been misplaced can never be recover again, because i have seen someone that misplaced his phrase code and up till date the bitcoin in his wallet he never have access to penetrate into the wallet, so if this particular solution you render can be of help to retrieve a missing password that means all lost password can be recovered?

Also, if you make the gap limit too high, your wallet will be very slow, take a long time to sync, or might crash altogether. Don't generate thousands of addresses just for the sake of it.

You have to change the gap limit. Go to the Console (enable it first by selecting View -> Show Console) and type in the following command.

wallet.change_gap_limit(number)

The difference between running a full-node and using an SPV client like Electrum is that with your own node, you check and verify the entire history of transactions from the beginning of Bitcoin. With a full node, you are just trusting someone else and you aren't doing the verification on your end.

Electrum servers can be operated by malicious parties who can find out things about you to de-anonymize you. By connecting to them, they will know the balance of all your addresses connected to that wallet, including the unused ones. They will also know your IP address and the version of your client. With a full-node, you aren't leaking that info because you are running that server.

Pmalek has already pointed out the differences, if you run the full node, you will not depend on any third party, even mempool and transaction history in details are all within your reach without depending on any their party while runing full node. If you want to have privacy, you need to run full node.

If this is the case, it will be good to buy a reputed hardware wallet. What I think you are concerned more about is security and safety of your coins, you can buy reputed hardware walllet, it still make transactions easier.