Newb question about torshops mechanics

[ZDKZAZA11]

Hello there,

I was wondering about btc path on torshops. I registred on one of those shops, it gave me a "unique generated" (I guess) btc wallet address.
To buy stuff, I need to send btc to this address.

But what's the mechanic behind ? I mean I understand I can create my own btc wallet, send to other ppl btc wallet using their address, but how do those shops generate address like this and can recover the btc behind ?
Do they have internal mechanics that create a new wallet they own once I registred ?
So they must own tons of wallets (1 per customer) running arround ?

I'm just curious how this works.

Thanks

[1714619403]

1714619403

[jackg]

They'll make a new address for every customer they have yes but the mechanics of how this might be done can be different per place.

The simplest is creating an address and private key pair every time a user registers and storing that address with them in their account (they're all less than 40 bytes so it's not too much to store - two million is only 80 MB).

The second alternative some places kufbt use is by using the bip32 derivation to get a master private key and master public key pair. These can be used similarly with limits set things such as "only let 1000 people have an address that uses this key before getting a new one" and then set a number next to the users' database entry so they know how far down the key must be indexed to get their address.

[bL4nkcode]

[...]
But what's the mechanic behind ? I mean I understand I can create my own btc wallet, send to other ppl btc wallet using their address, but how do those shops generate address like this and can recover the btc behind ?
Do they have internal mechanics that create a new wallet they own once I registred ?
So they must own tons of wallets (1 per customer) running arround ?
[...]

If you ask about the wallet address in the site, it just the same process most wallet are using especially if its an HD one. Sometimes online shops do use payment processor such as btcpay server. The idea is, in every user registered the site generates a unique wallet address using the payment processor's API/program and it will be saved to their database for easy identification of every user. So yes, it may generate millions of wallet address depends on the number of the website's users.

[BitMaxz]

If you talking about behind the shop then they have control of those addresses it was generated from their own wallet it's a single wallet generated by a seed phrase.

You can generate many addresses as you like on one single wallet so if you are the owner of the shop and use a BTCpayserver as mentioned above you only need to put your master public key into BTCpayserver and let it generate unique addresses for every customer on their shop.

So if you are a customer from that shop and you have a unique address generated from that shop you don't have any control of that address what you can only do is to deposit if you want to buy anything from that shop. You can't able to recover anything from that shop only the shop owner can able to recover the BTC on that address.

[hugeblack]

All HD wallets can generate a unique address for each user and it is used to increase customer privacy and ensure that each transaction is unique and can then be individually verified, but it is better to use the Lightning Network to avoid fees.
The way the point of sale works will determine how the system works, but some give all users the same address.
Note that some cryptocurrencies such as Ripple can use one address and add a custom tag for each transaction.