The crypto world has exploded in recent years, with an increasing number of cryptocurrencies being created and traded every day. As a result, there's been a growing need for APIs that allow developers to integrate crypto functionality into their applications.

In this article, we'll go over what crypto APIs are, how they work, and why they're useful for developers. We'll also discuss some of the most popular crypto APIs currently available.

## What are Crypto APIs?

Crypto APIs (Application Programming Interfaces) are a set of protocols and tools that allow developers to interact with cryptocurrency services and build applications that use crypto functionality. They provide an easy-to-use interface for accessing crypto data and performing crypto-related tasks such as exchanging currencies, tracking prices, and managing transactions.

### How do Crypto APIs Work?

Crypto APIs use REST (Representational State Transfer) or web sockets to communicate with crypto services and retrieve information such as current prices, trading volumes, and historical data. The APIs are typically secured with an API key or token, which developers use to access the data and perform actions.

For example, a Developer might use a crypto API to retrieve the current price of Bitcoin and display it in their application. The developer would send a request to the API with the appropriate parameters, such as the currency they want to retrieve data for and the date range they're interested in. The API would then send back a response with the requested information.

### Why are Crypto APIs Useful for Developers?

Crypto APIs make it easier for developers to build applications that use crypto functionality. They provide a convenient way to access crypto data and perform crypto-related tasks without having to build and maintain their own infrastructure.

### Popular Crypto APIs

There are many crypto APIs available, ranging from simple data retrieval APIs to more complex APIs that provide advanced functionality. Here are some of the most popular crypto APIs:

- **Bitquery APIs:** [Bitquery](https://bitquery.io/) offers blockchain data APIs for over 40 different blockchains. These APIs are created with GraphQL technology. As a result, you can access data from multiple blockchains using a single GraphQL endpoint. You can also write GraphQL queries to get specific data based on your needs.
- **Binance API:** [Binance](https://binance-docs.github.io/apidocs/spot/en/#change-log) is one of the largest cryptocurrency exchanges, and its API provides access to real-time market data and trading functionality.
- **CoinAPI:**  [CoinAPI](https://www.coinapi.io/) is a service provider that specializes in providing price and market data. CoinAPI has a solid reputation in the market for high-quality crypto data, with over 20TB of raw market data in its database.
- **NOWNodes API:**  It provides full nodes and blockchain explorers for quick and easy access to popular blockchains. It is a blockchain-as-a-service solution that offers high-quality connectivity through an API.
- **Wyre API:** ****[Wyre](https://www.sendwyre.com/)** is a simple integrated payment solution for crypto startups looking to implement crypto as a payment method rather than traditional payment methods- fiat-to-crypto on-ramp.
- **Bitpowr API:** [Bitpowr](https://docs.bitpowr.com/reference/api-reference) Wallet Infrastructure API is a flexible and secure tool. It supports Multiple Blockchains like Bitcoin, Bitcoin Cash, Litecoin, Polygon, Solana, Tron, Stellar, and Ethereum, on its platform etc. Exchanges, crypto Wallets, Fintech, Hedge funds, and payment gateways can send, receive and manage cryptocurrencies fast and securely with the sub-accounts feature that is given to these organizations.

### Why use Crypto APIs in the first place?

- **It is time-saving:** Crypto APIs allow developers to save time by providing access to ready-made functionality, so they don't have to build it from scratch.
- **Cost-effective:** By using a crypto API, developers can reduce their costs as they don't have to build and maintain their own infrastructure.
- **Access to real-time data:** Many crypto APIs provide real-time data, allowing developers to build applications that display up-to-the-minute information on crypto prices and trading volumes.
- **Security:** Crypto APIs are typically secure and use encryption to protect sensitive information.

### Conclusion

Crypto APIs are an essential tool for developers who want to build applications that use crypto functionality. They provide a convenient way to access crypto data and perform crypto-related tasks, and they can help developers save time and reduce costs. With APIs like Bitpowr’s, it has never been easier for developers to integrate crypto into their applications. 

[Let us](https://bitpowr.com/contact-sales) hear from you and see how we can help you use [Bitpowr](https://docs.bitpowr.com/reference/api-reference) Wallet Infrastructure APIs to build your DApps in no time.

Discover crypto APIs that will make your work easier as a developer. 

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Crypto APIs for Developers

Digital asset businesses, such as cryptocurrency exchanges, token issuers, and even financial institutions that want to provide digital asset wallets and other services to their users, require a secure and reliable blockchain infrastructure provider to help manage their operations. But choosing the right provider can be a challenge, as there are many options to consider, each with its own set of features, advantages, and disadvantages.

In this article, we will outline some of the key factors that digital asset businesses and financial institutions should consider when selecting a blockchain infrastructure provider.

## Factors to Consider when Choosing a Blockchain Infrastructure Provider

**1. Security**

Security should be the top priority for digital asset businesses and financial institutions, as they hold and manage large amounts of valuable assets on behalf of their clients. The provider's security measures have to be extensive and reliable enough to prevent unauthorized access and other cyber threats. Common security features to look out for include multi-signature wallets, multi-party computation,  two-factor authentication, and encryption protocols.

The provider's security measures should also be regularly audited by reputable third-party security firms to ensure that they are effective and up-to-date.

**2. Scalability**

Another critical criterion is scalability. Digital asset businesses and financial institutions need to ensure that their blockchain infrastructure can handle large volumes of transactions and support the rapid growth of their client base.

As such, their choice blockchain infrastructure provider should have a proven track record of delivering high-performance, scalable solutions that can handle increased demand and should also have the ability to upgrade their infrastructure as needed to support future growth.

**3. Compliance**

Businesses offering blockchain-powered financial services have to comply with various regulations and laws, such as anti-money laundering (AML) and know-your-customer (KYC) requirements to avoid sanctions and fines.

Choosing a compliant blockchain infrastructure provider will also help financial institutions and digital asset businesses to build trust with their customers, investors, and regulatory bodies. With compliance in place, these organizations can demonstrate that they are committed to following regulatory requirements and best practices to prevent fraud and financial crime.

Going by the listed benefits above, a financial institution’s preferred blockchain infrastructure provider should have a strong understanding of these regulations and should be able to help their clients meet these requirements by providing the necessary tools and processes.

**4. Interoperability**

Digital asset businesses and Financial Institutions should consider blockchain infrastructure providers that support multiple blockchains and cryptocurrencies. This will enable them to expand their offerings and increase their flexibility in response to market demand.

The provider should have a deep understanding of different blockchain technologies and should be able to support the integration of new assets as needed.

**5. Customer support**

Businesses often require a great deal of support to kick off and continue their operations on the blockchain. This is why the provider's customer support should be responsive, knowledgeable and available to help resolve any technical or operational issues. The provider should also offer training and resources to help their clients get the most out of their blockchain infrastructure.

It’s important to consider this factor when making a decision because the quality of the provider's customer support can have a significant impact on the overall success of the digital asset business or financial institution.

**6. Cost**

Digital asset businesses and financial institutions should consider the costs associated with using the provider's services, including initial setup fees, monthly or annual fees, and any additional costs for premium services or support. The provider should be transparent about their pricing and should provide a detailed breakdown of all costs.

Digital asset businesses should also consider the long-term costs associated with using each solution, including any potential price increases or hidden fees.

**7. Reputation**

The blockchain sector is still maturing; as such many innovators and builders are still trying to figure out a lot of things. This is why it’s important for digital asset businesses and financial institutions to opt for only reputable and trusted blockchain infrastructure providers.

The choice provider should have a strong reputation in the industry and should be trusted by other businesses. If possible, the provider should have verifiable references and reviews from their clients that attest to their proficiency. This will give the digital asset business or financial institution a better understanding of the provider's strengths and weaknesses and help them make an informed decision.

The provider's involvement in the industry, such as attending conferences and events, and their reputation within the wider blockchain community, should also be taken into consideration.

## Wrapping Up

Choosing the right blockchain infrastructure provider is a critical decision for digital asset businesses and financial institutions. By carefully considering the factors outlined above, businesses can ensure that they select a provider that will help them operate securely and efficiently, and support their growth and success over the long term.

Bitpowr ticks all the outlined boxes. From offering a unified ecosystem of blockchain solutions at competitive prices to delivering wallet solutions protected by iron-clad security measures, we understand what digital asset businesses and financial institutions require to succeed on the blockchain. [Let’s chat about how we can help you today](https://bitpowr.com/contact-sales).

Here are some key things to know before choosing a  Blockchain provider for your financial Institution. 

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How to Choose the Right Blockchain Infrastructure Provider

At Bitpowr, we take the security of our users' accounts very seriously, which is why we have implemented an advanced measure to ensure the protection of your account - two-factor authentication (2FA). This feature provides an additional layer of security to keep your account safe from unauthorized access.

By opting for our 2FA option, you can use your preferred mobile authenticator app to sign in to your Bitpowr account. With this feature, you can have peace of mind knowing that your account is much more secure and less susceptible to hacking attempts.

The 2FA option is designed to work seamlessly with your account, and it adds an extra level of security without any inconvenience. Once you activate 2FA, you will be prompted to enter a unique token generated by your mobile authenticator app whenever you sign in to your Bitpowr account. This ensures that even if your password is compromised, your account remains secure.

At Bitpowr, we believe that security should be a top priority, and we are committed to providing our users with the best protection possible. With 2FA, you can rest assured that your account is well-protected and that you can access it with confidence. 

### What Exactly is Two-factor authentication?

Two-factor authentication (2FA) is a highly effective electronic security measure that requires users to present two or more pieces of evidence to an authentication mechanism before gaining access to a website or application. This can include something only the user knows, such as a password or PIN, something only the user has, such as a smart card or mobile device, or something only the user is, such as a fingerprint or other biometric data. By requiring multiple forms of evidence, 2FA provides an additional layer of security beyond traditional password-based authentication, making it much harder for unauthorized users to gain access to sensitive information.

### Examples of Two-Factor Authentication (2FA)

There are several examples of two-factor authentication that are commonly used today. One of the most popular is the use of SMS or text message verification, where a code is sent to the user's phone and must be entered along with their password. Other methods include email verification, biometric authentication such as fingerprint or facial recognition, or the use of hardware tokens that generate one-time passwords.

### How does 2FA work?

The process starts with the user entering their username and password as usual. Once the information is entered, a prompt will appear requesting a second form of authentication. This second form of authentication could be a code sent to the user's phone, a fingerprint scan, or any other method that serves as an additional layer of security. If the user is unable to provide the correct second form of authentication, access to the account will be denied. This extra layer of protection greatly reduces the risk of unauthorized access to sensitive information and helps ensure that only authorized users are granted access to the account.

### Why do I need 2FA?

The main reason to use two-factor authentication is to add an extra layer of security to your online accounts and protect your sensitive information from being accessed by unauthorized users. Passwords can be easily compromised through phishing attacks or data breaches, but with 2FA, a hacker would also need access to your physical device or token to gain access to your account. Additionally, many businesses and organizations now require their employees to use 2FA as part of their security policies.

### Is two-factor authentication secure?

While two-factor authentication is not foolproof, it is significantly more secure than relying on passwords alone. It makes it much more difficult for hackers to gain access to your accounts and provides an extra layer of protection against phishing attacks and data breaches. That being said, it's still important to choose strong passwords and take other security measures to protect your online accounts.

### Future of authentication

As technology continues to evolve, so will authentication methods. Already, we are seeing the adoption of biometric authentication such as facial recognition and fingerprint scanning become more widespread. In the future, we may see the use of artificial intelligence and machine learning to further enhance security and reduce the risk of fraud and cyber-attacks. Ultimately, it's important to stay informed and take steps to protect your personal information and digital assets in an increasingly connected world.

Bitpowr remains your safest institutional MPC-protected Wallet- Built from the ground up to enable your business to provide users with safe, secure, and easy access to web3 wallets. These easily customizable and reliable APIs help you save resources that would be otherwise spent navigating the nuances of blockchain infrastructure. Instead, you can focus on what matters most: delivering more value and innovative products to their customers. [Reach out to us](https://bitpowr.com/contact-us) if you need more information, we are happy to help. 


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Two-Factor Authentication now live on Bitpowr

We are thrilled to announce that we have integrated USDT_BSC on Bitpowr. This means you can now transact with USDT_BSC using your Bitpowr account and power products that can facilitate transactions involving USDT_BSC with our platform.

### **What is USDT_BSC?**

USDT_BSC is a token that represents the stablecoin Tether (USDT) on the Binance Smart Chain (BSC) network. As a stablecoin, USDT_BSC is pegged to the value of the US dollar, which means that its value is intended to remain at a 1:1 ratio with the US dollar. 

Although USDT_BSC is a BEP-20 token (hosted on Binance Smart Chain), its functionalities mirror those of an ERC-20 token (a token hosted on the Ethereum blockchain). This allows USDT_BSC to be used in the same way as Ethereum-based tokens, such as for trading on decentralized exchanges (DEXs) or as collateral for lending and borrowing platforms.

### **What the Integration of USDT_BSC Means for Our Users**

With the integration of USDT_BSC, businesses using Bitpowr will be able to  transact in a stablecoin that is fast, secure, and cost-effective. This will allow them to save on transaction fees that are associated with Ethereum-based tokens, for instance, and reduce the time it takes to complete transactions.

In addition to the benefits of using a stablecoin, USDT_BSC also offers increased liquidity for Bitpowr users. As a widely used stablecoin, USDT_BSC is easily exchangeable on most cryptocurrency exchanges, making it a highly liquid asset. 

This increased liquidity will give our customers more flexibility and options when it comes to trading and exchanging cryptocurrencies.

Overall, the integration of USDT_BSC on the Bitpowr platform represents a major step forward for our customers. By providing a stablecoin that is fast, secure, and cost-effective, we are helping them to transact more efficiently and effectively in the rapidly evolving world of blockchain and cryptocurrency. 

We are excited to see the positive impact that this integration will have on our customers, and we look forward to continuing to innovate and improve our platform in the future.

### **Conclusion**

Bitpowr integrates with over 12 blockchains and supports even more tokens. So if you’re building or running a financial product designed to support blockchain transactions, we are your go to blockchain infrastructure provider. [Let’s chat](https://bitpowr.com/contact-sales)!

We now support USDT_BSC. Read what this means for our users.

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Bitpowr Integrates USDT Stablecoin on Binance Smart Chain

Blockchain technology has gained immense popularity over the past few years, with its decentralized and secure nature making it ideal for various applications. One of the most critical aspects of blockchain technology is the speed at which transactions are processed. This article will look at some of the best blockchains with high transaction speed but first, let’s find out what transaction speed is.

### **What exactly is Transaction Speed**

Transaction speed refers to the amount of time it takes for a transaction to be processed and recorded on a blockchain network. It is a measure of how quickly a transaction can be completed, from the moment it is initiated by the sender to the moment it is confirmed by the network.

Transaction speed can be influenced by various factors, including network congestion, the size of the transaction, and the fee attached to the transaction. Some blockchain networks, like Bitcoin, can have a slower transaction speed due to the decentralized nature of the network, while others, such as some newer blockchain networks, have been specifically designed to offer a faster transaction speed.

In general, a fast transaction speed provides a better user experience and allow for a wider range of use cases for blockchain technology. However, it's important to strike a balance between speed and security, as a faster transaction speed may come at the cost of decreased security in some cases.

### **Blockchains With the Highest Transaction Speed**

1. **Solana**

Solana is a high-performance blockchain network designed for decentralized applications and digital assets. It was created in 2017 by Solana Labs, a San Francisco-based technology company.

Solana is unique in its use of a proof-of-stake consensus mechanism, which allows it to process with a transaction speed of [3,000 TPS (theoretically, up to 710,000](https://solana.com/)[)](https://medium.com/@FA2_SFM/a8c2d6063d79) The network is designed to provide fast, secure, and low-cost transactions, making it well-suited for a wide range of decentralized applications, including decentralized finance (DeFi) platforms, gaming, and content delivery.

Solana also offers a number of features and tools to support developers, including a developer platform, a suite of developer tools, and an ecosystem of partnerships and integrations with other blockchain projects. This makes it an attractive option for developers looking to build decentralized applications that can scale to meet the demands of a growing user base.

Overall, Solana is one of the fastest and most efficient blockchain networks available today, and it is well-positioned to play a key role in the continued growth and development of the decentralized technology space.

2. **Polygon**

Polygon (formerly known as Matic Network) is a Layer 2 scaling solution for Ethereum, which provides faster and cheaper transactions Polygon achieves speeds of **up to 7,000 TPS** while still being fully compatible with the Ethereum ecosystem. It aims to offer a more scalable, secure, and user-friendly blockchain infrastructure for decentralized applications (dApps) and the decentralized finance (DeFi) ecosystem.

Polygon uses a proof-of-stake consensus mechanism, which allows for faster block validation and reduces energy consumption compared to proof-of-work-based blockchain networks like Ethereum. It also enables the use of smart contracts, which can be used to build dApps, and it supports Ethereum's native token, Ether (ETH), as well as other ERC-20 tokens.

One of the critical features of Polygon is its modular design, which allows developers to choose the right set of protocols and tools to build their applications. For example, developers can choose between using Ethereum's existing tooling and ecosystem or using Polygon's unique set of protocols and tools to build more scalable and cost-effective solutions.

In addition, Polygon provides a more flexible and developer-friendly infrastructure for dApp developers, as well as lower gas fees, which results in lower transaction costs for users. This makes it an attractive option for developers who are looking for a more cost-effective and scalable solution for building decentralized applications and services on Ethereum.

3. **TRON**

Tron (TRX) is a decentralized blockchain platform that was created with the aim of building a free, global digital content entertainment system. It was founded in 2017 by Justin Sun, and it has its headquarters in Singapore.

Tron is designed to be a high-speed, low-cost blockchain platform for decentralized applications (dApps) and decentralized finance (DeFi) use cases. It uses a Delegated Proof of Stake (DPoS) consensus mechanism, which allows for fast and efficient validation of transactions.

The Tron network is capable of processing over 2,000 transactions per second, which is significantly faster than many other blockchain networks. This high transaction speed makes it an attractive option for developers who are building dApps or decentralized exchanges (DEXs) that require fast and reliable transaction processing.

In addition to its high transaction speed, Tron offers a number of other features and advantages, including a large and active developer community, a thriving ecosystem of dApps and DeFi projects, and support for multiple programming languages, including Java, Solidity, and more.

Tron also has its own cryptocurrency, Tronix (TRX), which is used to pay for transactions and access to dApps on the Tron network. TRX can also be traded on a number of cryptocurrency exchanges, and it has become one of the top 20 cryptocurrencies by market capitalization.

Overall, Tron is a blockchain platform that is designed for fast, low-cost transactions, and it has a growing ecosystem of dApps and DeFi projects that are leveraging its capabilities.

4. **Ripple**

Ripple (XRP) is a real-time gross settlement system, currency exchange, and remittance network created by Ripple Labs Inc., a US-based technology company. Ripple is built on a decentralized, open-source protocol, and it supports tokens representing fiat currency, cryptocurrency, commodities, or any other unit of value such as frequent flier miles or mobile minutes.

Ripple's payment protocol has been designed to be fast and efficient, with a transaction speed of up to 1,500 transactions per second (TPS). The Ripple network allows for near-instant cross-border transactions, which makes it an attractive option for financial institutions looking to process international payments quickly and efficiently.

5. **Stellar**

Stellar is a decentralized, open-source blockchain platform that was created to enable fast, secure, and low-cost cross-border transactions. It was founded in 2014 by Jed McCaleb and Joyce Kim, and it is headquartered in San Francisco, California.

Stellar's focus is on making financial services more accessible and affordable for people, regardless of their location or financial status. To achieve this, Stellar has built a fast and efficient payment platform that allows for near-instant cross-border transactions, with transaction processing speeds of up to 1,000 transactions per second.

In addition to its payment capabilities, Stellar offers a number of other features and benefits, including a decentralized exchange that allows users to trade assets on the network, support for multiple programming languages, and a growing ecosystem of dApps and decentralized finance (DeFi) projects.

Stellar also has its own cryptocurrency, Lumens (XLM), which is used to pay for transactions and access services on the Stellar network. XLM can also be traded on a number of cryptocurrency exchanges, and it has become one of the top 30 cryptocurrencies by market capitalization.

Overall, Stellar is a blockchain platform that is focused on making financial services more accessible and affordable for people, and it has a growing ecosystem of dApps and DeFi projects that are leveraging its capabilities.

6. **Hedera Hashgraph**

Hedera Hashgraph is a next-generation, distributed ledger technology that was designed to be fast, secure, and scalable. It uses a unique consensus mechanism called hashgraph consensus, which allows for fast and efficient validation of transactions. The Hedera network can process up to 10,000 TPS, which makes it one of the fastest blockchain platforms in the market.

In addition to its high transaction speed, Hedera Hashgraph offers a number of other benefits, including low latency, high throughput, and increased security and stability. Hedera is being used for a variety of use cases, including supply chain management, digital identity, and more.

### **Conclusion**

In a fast-paced world, people expect instant results, and this also applies to financial transactions. If a blockchain has a slow transaction speed, it may lead to long wait times for users and can negatively impact the overall user experience.

So, when choosing a blockchain for a specific application, it is important to consider factors such as transaction speed, security, and cost.

[Bitpowr](https://www.bitpowr.com) supports these Blockchains, which means you can store, transfer and launch products that interact with these blockchains e.g. [Solana](https://bitpowr.com/blog/bitpowr-and-solana), [Polygon](https://bitpowr.com/blog/bitpowr-and-polygon), [stellar](https://bitpowr.com/blog/enable-more-stellar-trustline-support-assets-on-bitpowr). If you have specific requirements or use cases for your product, we would love to hear from you to discuss how we can help. [Reach out](https://bitpowr.com/contact-sales)

Speed, security and cost are very important factors to consider when choosing blockchains. Here are some with the highest transaction speed you can choose from.

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Blockchains With the Highest Transaction Speed

Cryptocurrency is rapidly becoming a mainstream investment option, and the need for safe and secure storage solutions has never been more critical. According to recent data, the total market capitalization of cryptocurrencies exceeded $1 trillion, with Bitcoin alone accounting for over 40% of the market share. As more institutions and investors enter the market, the demand for reliable storage options continues to grow. This is where custodial and non-custodial wallets come in, providing users with a safe and convenient way to store and manage their digital assets. As you read-on you will get to know the differences between these two wallets so you can in turn make better business decisions.

### What is a Custodial Wallet?

A custodial wallet is a type of wallet where a third party, such as an exchange, holds the private keys to your cryptocurrencies. Popular exchanges like Gemini, and Coinbase offer custodial wallets that make it easy for investors to transfer, store and manage their cryptocurrencies. These wallets are convenient and require less responsibility, but it’s important to note that using a custodial wallet means trusting a third party with your assets. As a result, you may not have full control over your cryptocurrencies.

### Pros of Custodial Wallets.

**User Friendly:** Most custodial wallets have a user-friendly design. You can easily figure out a wallet's features without any technical background.

- **It is Easier to Use:** Ease of use is the primary motivation for the existence of hot wallets. Tokens in custodial wallets can be used and/or traded right away.
- **It is Cheaper:** Custodial wallets are digital wallets offered by centralized third parties, like exchanges, which means they typically run on services and will require no gas or other costs.
- **Risk of losing your private key is low:** Keeping your keys safe is a major concern. With most of them, you can even get your passwords to reset or confirm your identity to regain access to your account should you lose it.
- **Higher backup possibility:** Another advantage of custodial wallets is that the central authority managing your wallet offers backup facilities. This makes it easier to undo any transaction or restore a previous version

### Cons of Custodial Wallets.

In the same way that a bank has your money, or a casino holds your chips, a custodial wallet owes you tokens that it holds and can use for its own purposes in the meantime — such as providing liquidity for trading.

- **Need for KYC:** Compliance with Know Your Customer (KYC) and Anti-Money Laundering (AML) regulation is required in many cases depending on jurisdictions and legislations applicable. You won’t be able to access your funds or any of the connected services until you can prove your identity. The requirement of identifying verification obstructs the fundamental idea of cryptocurrency, namely anonymity.
- **Data Breach/Hack:** Hot custodial wallets of exchanges hold a lot of tokens and Personal Private Information (PPI), which makes them prime targets for malicious actors such as hackers or other attackers.
- **Internet Dependency:** In order to view or transfer your tokens, you need internet access. Being cut from accessing the internet implies being cut from your capital.

### What is a Non-Custodial Wallet?

It is a type of Blockchain wallet that lets you be your own bank. This implies that users have full control over their funds and their private key.

Non-custodial wallets could be browser-based, software installed on mobile devices or desktop computers, or hardware devices.

While non-custodial wallets don’t require you to trust a third party, they require you to trust yourself to keep your keys and your wallet secure. If you were to lose your wallet, destroy your wallet, or forget your password, and you haven’t taken precautions to be able to regenerate your wallet, you could lose access to your funds. However, there is a backup procedure typically, you will have generated a sequential string of 12, 18, or 24 words that are displayed upon setting up your crypto wallet.

### Pros of Non-Custodial Wallet

- **You Have Control Over Funds:** A non-custodial wallet offers you control over wallet private keys, so you don’t have to rely on a third party to handle your cash or perform any related operations when you have control of a private key.
- **Lower Risk of Data Breach/Hack:** Everyone is a potential target for hackers, just like everyone is a potential target of theft. But being a single wallet with a relatively small amount of tokens compared to what an exchange would hold, reduces your risk of being targeted by attackers.
- **Instant Withdrawals:** Having complete control means you can move your tokens whenever you want, without any preset delay period imposed by third parties, which is a common practice with exchanges.
- **Non-Internet Reliant:** Local cold wallets can be accessed without any internet access, you may not be able to transact but you can at least see how many tokens you hold and that they are safe.

### Cons of Non-Custodial Wallets

- **No customer Service:** If you make a mistake, you are stuck with the consequences. One typo can mean a loss, and there’s no way of undoing mistakes.
- **Keys Lost = Money Lost:** If you lose your password & seed phrase, there is no one who can help you restore your wallet or information. Be very careful !
- **Higher Fees:** Fees are based on ETH gas costs, which depends on the price of ETH and the congestion of the network. These fees fluctuate wildly, and get pretty high at times.
- **More Responsibility:** If it is your first crypto purchase, you may not be comfortable sending funds to a cold wallet, or setting one up. Although, it is not technically difficult, it can be emotionally overwhelming.

![custodial vs non-cuctodial.png](https://res.cloudinary.com/samvwede/image/upload/v1677514242/custodial_vs_non_cuctodial_acc876b1b3.png)

### Which Wallet is better?

Custodial wallets are easier to deal with, and more convenient if you’re looking to move assets or participate in the markets. But the fear of major problems like attacks and bankruptcy should be enough to make you want a second non-custodial cold wallet to store your assets. Many people use a combination of both wallet types. It is much safer to distribute assets between multiple wallets. [Bitpowr](https://bitpowr.com/product/wallet-infrastructure) offers different wallet types to satisfy varying customer needs, including smart contract wallets, secure MPC custody, and non-custodial wallets.

If you need help with more info on wallets check out [Bitpowr technologies](https://bitpowr.com/product/wallet-infrastructure). We provide a variety of wallet services for your businesses. We also help you build and scale your crypto business, and manage your digital assets. [Sign up today for access](https://bitpowr.com/contact-sales)

Choosing the right wallet for your digital asset will save you a lot of losses. Here is a comparison between the two major type of wallets to help you make informed decisions.

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Custodial and Non-Custodial Wallets: Which is best for your Business?

Bitcoin is a decentralized digital currency that has captured the attention of investors, technologists, and the general public alike. Despite its growing popularity, there are still many misconceptions and myths about Bitcoin that can be confusing for those who are unfamiliar with the technology. These myths range from the idea that Bitcoin is only used for illegal activities, to the belief that it is not a valuable asset and has no real-world use.

In this article, we aim to dispel some of the most common myths about Bitcoin and to provide a clearer understanding of what it is, what it can be used for, and why it is valuable.

### **1. Bitcoin transactions are anonymous**

The myth that Bitcoin transactions are anonymous stems from the fact that, unlike traditional financial systems, Bitcoin transactions do not require the use of personal identification information. This means that, in theory, a person's real-world identity cannot be directly tied to their Bitcoin transactions.

However, this is only a myth because Bitcoin transactions are actually pseudo-anonymous. While it is true that personal identification information is not required to make a transaction, every transaction on the Bitcoin network is publicly recorded on the blockchain, which is a transparent and immutable ledger. This means that anyone can see the details of a transaction, including the amounts involved and the addresses of the sender and receiver.

Given this information, it is possible for individuals or organizations to track and analyze the flow of bitcoins from one address to another, potentially revealing the identity of the person behind the address. This is why it is important to understand that while Bitcoin provides a greater degree of privacy compared to traditional financial systems, it is not truly anonymous.

Therefore, the myth that Bitcoin is anonymous can be dispelled by understanding that while personal identification information is not required to make a transaction, the public nature of the blockchain means that transactions can still be traced and analyzed.

### **2. Bitcoin is not backed by anything and has no value**

The myth that Bitcoin has no value because it's not backed by anything stems from a lack of understanding of how Bitcoin works and what gives an asset value. The traditional definition of value, that a currency or asset must be backed by a government or some physical commodity, does not apply to Bitcoin, which operates on a decentralized, digital platform.

In the case of Bitcoin, its value comes from its scarcity, security, and utility as a medium of exchange, store of value, and unit of account. There is a limited supply of 21 million bitcoins, and its decentralized nature means that it is not subject to the same inflationary pressures as fiat currencies, which can be printed at will by central banks. The security of the Bitcoin network, through the use of cryptography, also adds to its value, as it protects against counterfeiting and fraud. Additionally, the growing acceptance of Bitcoin as a form of payment, both online and in physical stores, increases its utility and therefore its value.

It is important to note that the value of Bitcoin, like any other asset, can be volatile and can fluctuate significantly. However, this does not mean that it has no value, but rather that its value is determined by supply and demand in the market, just like any other asset.

Bitcoin is backed by its technology, network, and the trust and adoption of its users. Its value is determined by supply and demand, just like any other asset. While it is true that there is no central authority backing Bitcoin, it has been adopted by millions of people and businesses around the world and its value has grown significantly over the years.

### **3. The Bitcoin Blockchain is insecure**

While it is true that no technology is 100% secure, the Bitcoin network has been designed to be secure and has proven to be so over the years. The myth that the Bitcoin blockchain is insecure stems from a common misunderstanding of the security of decentralized systems and the difference between the security of the technology and the security of the exchanges and wallets that store and trade bitcoins.

The Bitcoin blockchain is secured by cryptographic algorithms, and the decentralized nature of the network makes it resistant to manipulation, fraud, and tampering. Transactions are verified by a network of nodes, and once a block of transactions is added to the blockchain, it becomes part of an immutable ledger that is resistant to change.

However, while the technology itself is secure, exchanges and wallets that store bitcoins can be vulnerable to hacking and theft. In the past, some exchanges have been hacked and bitcoins have been stolen, leading some people to believe that the blockchain itself is insecure.

This is a myth because the security of the exchanges and wallets is separate from the security of the blockchain. The security of the blockchain is maintained by the network of nodes that verify transactions, while the security of exchanges and wallets is the responsibility of the companies operating them. In other words, the security of the Bitcoin blockchain is not compromised by a hack of an exchange or wallet.

### **4. Bitcoin is unregulated and unsupported by governments**

People often consider Bitcoin to be unregulated and unsupported by governments because it operates on a decentralized, peer-to-peer network and is not controlled by any central authority. In contrast to traditional fiat currencies, which are issued and regulated by governments, Bitcoin operates on a decentralized platform and its development and adoption are driven by a community of users, developers, and businesses.

This leads some people to believe that Bitcoin is not regulated and that governments do not support it. However, this is just a myth. While Bitcoin is decentralized and not controlled by any government or central authority, it is not completely free from regulation. Governments around the world are grappling with how to regulate cryptocurrencies, and many have already enacted laws and regulations to address issues such as money laundering, tax evasion, and consumer protection.

For example, some countries, such as Japan and the United States, have taken a more permissive approach to regulation, allowing businesses to operate with cryptocurrencies and even granting licenses to exchanges. Other countries, such as China and Russia, have taken a more restrictive approach, limiting or banning the use of cryptocurrencies.

### **5. Bitcoin is difficult to understand and has a high entry barrier**

The myth that adopting Bitcoin has a high entry barrier is based on several misconceptions, including:

Technical complexity: Some people believe that Bitcoin is difficult to understand and use because of its underlying technology, such as blockchain and cryptography.

Cost: Some believe that buying Bitcoin is expensive, and that the cost of entry is too high for most people.

Lack of widespread adoption: Some believe that Bitcoin is not widely adopted, and that there are not enough places to spend it, making it difficult to use.

However, these misconceptions are not true. Adopting Bitcoin is becoming increasingly easier, as more and more user-friendly wallet and exchange services are being developed, making it simple for anyone to buy and use Bitcoin. Additionally, the number of merchants accepting Bitcoin as a form of payment is growing, and there are now many websites and apps that make it easy to spend Bitcoin for everyday items.

In summary, while the entry barrier to using Bitcoin was higher in the past, it is now becoming increasingly accessible and user-friendly. The key is to do some research, find a reputable wallet or exchange service, and get started.

### **6. Bitcoin has no utility**

The misconception that Bitcoin has no utility is based on a misunderstanding of what Bitcoin is and what it can be used for. Some people believe that Bitcoin is just a speculative asset and has no practical use, but this is not true.

Bitcoin has several important utilities that make it a valuable asset:

Digital Currency: Bitcoin can be used as a digital currency for peer-to-peer transactions without the need for intermediaries, such as banks. This allows for faster, cheaper, and more secure transactions compared to traditional forms of payment.

Store of Value: Bitcoin can also be used as a store of value, similar to gold or other precious metals. It is decentralized, meaning it is not subject to government or central bank control, making it a potentially useful hedge against inflation and financial instability.

Programmable Money: Bitcoin is a form of programmable money, meaning that it can be programmed to automatically execute certain functions or conditions. This opens up new possibilities for financial innovation and automation.

Borderless Transactions: Bitcoin allows for borderless transactions, meaning that it can be used anywhere in the world where there is an internet connection. This makes it useful for cross-border transactions and remittances, where traditional methods can be slow, expensive, and subject to currency fluctuations.

### **7. Bitcoin will never integrate with the financial system**

This is a baseless assumption. In recent years, we have seen a growing number of financial institutions, such as banks and investment firms, start to embrace Bitcoin and other cryptocurrencies.

The myth that Bitcoin will never integrate with the financial system is based on a misunderstanding of the potential for technological progress and the changing nature of finance.

Bitcoin was created as a decentralized alternative to traditional financial systems, but over time it has evolved and become more integrated with traditional finance. Many financial institutions and companies are now exploring ways to incorporate Bitcoin into their systems and offerings. For example:

Institutional Investment: Bitcoin has become increasingly popular among institutional investors, who see it as a potential hedge against inflation and a store of value. Many institutions are now offering Bitcoin investment products, such as mutual funds and exchange-traded funds (ETFs), making it easier for individual investors to access Bitcoin.

Payment Systems: Bitcoin is being used as a payment method by a growing number of merchants and online platforms. Some payment processors, such as Square and PayPal, now allow their users to buy, sell, and hold Bitcoin, making it easier for people to use Bitcoin for everyday transactions.

Central Bank Digital Currencies: Some central banks are exploring the creation of their own digital currencies, which could be integrated with the existing financial system. This could lead to greater adoption and integration of Bitcoin and other cryptocurrencies into the financial system.

### **Wrapping Up**

As more and more people become aware of the benefits of Bitcoin and as the technology continues to evolve and mature, it is likely that Bitcoin will play an increasingly important role in shaping the future of finance. Despite the challenges and uncertainties that come with any new technology, it is clear that Bitcoin has the potential to offer real value and to be a significant force for positive change in the financial world.

Are you building or running a digital asset business? We offer easy-to-use blockchain infrastructure that connects you seamlessly to the digital assets world, enabling you to securely store and transfer Bitcoin and other cryptocurrencies. [Let’s chat.](https://bitpowr.com/contact-sales)

In this article we are dispelling some of the most common myths about Bitcoin and providing a clearer understanding of what it is.

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Dispelling Common Myths Regarding Bitcoin.

Stellar is an open-source, decentralized payment protocol that facilitates cross-border transactions between any pair of currencies. The company behind the protocol, also called Stellar, was founded in 2014 by Jed McCaleb and Joyce Kim. The Stellar protocol is supported by a non-profit organization, the Stellar Development Foundation (SDF), which aims to promote financial access and inclusion.

The native cryptocurrency of the Stellar network is called Lumens (XLM). Lumens are used as a bridge currency to facilitate transactions between different currencies on the network. They also serve as a means of anti-spam protection by requiring a small fee to be paid in Lumens for each transaction.

Stellar has received funding from a variety of sources, including Stripe, a payments company, and FastForward, a non-profit organization that supports open-source projects. In addition, the SDF has received funding from the likes of BlackRock and Google.

Stellar's mission is to connect people to low-cost financial services to fight poverty and develop individual potential. The organization aims to make it possible for people to transact with each other without the need for intermediaries, like banks, and to create a more inclusive global economy.

## How it Works

The Stellar network uses a consensus algorithm called the Stellar Consensus Protocol (SCP). SCP is based on the Federated Byzantine Agreement (FBA) model, which allows for fast and efficient transactions while maintaining a high level of security. SCP uses a network of validators responsible for verifying and confirming transactions on the network. This allows for quick confirmation times, typically just a few seconds.

The Stellar protocol uses a consensus algorithm called the Stellar Consensus Protocol (SCP) to verify transactions on the network. This algorithm is based on a federated Byzantine agreement (FBA) model, which allows for faster and more efficient consensus than traditional proof-of-work or proof-of-stake algorithms.

## What are its different uses?

One of the main use cases of the Stellar network is as a cross-border payment system. The network allows for fast and efficient money transfers between individuals and businesses in different countries, with low transaction fees. The network also supports the issuance of digital assets, such as tokens, which can be used for a variety of purposes, such as raising funds for a project or representing a company's stock.

 Here are several other use cases of Stellar

1. **Cross-border payments:** The Stellar protocol allows for fast and efficient cross-border transactions between any pair of currencies. This can help to reduce the cost and complexity of international payments, especially for individuals and small businesses.
2. **Remittances:** The Stellar protocol can be used to facilitate remittances, which are money transfers from one country to another. This can be particularly useful for migrant workers who want to send money back to their home countries.
3. **Microfinance:** The Stellar protocol can be used to provide microfinance services, which are small loans to individuals or small businesses. This can help to promote financial inclusion and support economic development in underbanked communities.
4. **Mobile money:** The Stellar protocol can be used to facilitate mobile money transactions, which allow individuals to store, send, and receive money using their mobile phones. This can be particularly useful in countries where many people do not have access to traditional banking services.
5. **Digital identity:** The Stellar protocol can be used to create and manage digital identities, which can be used for a variety of purposes, including voting, financial transactions, and accessing government services.
6. **Tokenization:** The Stellar protocol can be used to create, issue, and trade tokens or assets, which can represent a variety of things like loyalty points, rewards, or even stocks.
7. **Decentralized Exchange:** The Stellar protocol can be used to create decentralized exchanges (DEX) that enable users to trade assets in a trustless and decentralized environment.

## The Future of stellar

In the future, Stellar hopes to expand the use of its network beyond just financial services and to be used in other industries such as supply chains, voting systems, and more. With its fast and efficient transaction processing, low fees, and support for a wide range of digital assets, the Stellar network is well-positioned to become a key player in the blockchain and cryptocurrency space.

[Bitpowr recently announced the integration of Stellar Trustline Asset into our platform](https://bitpowr.com/blog/enable-more-stellar-trustline-support-assets-on-bitpowr). unlike any other blockchain, Stellar’s uniqueness is becoming more noticeable. On Bitpowr, you can now enable and transact with Stellar Trustline Asset for more security and as a better option for your customers.   [Reach out](https://contact@bitpowr.com/contact-sales) if you need help getting started using Stellar for your business, we are happy to help.

Learn about the Stellar Network, it's use cases and benefits.

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What is Stellar

Building products on the blockchain, such as exchanges can be very daunting and expensive. It requires a complex system with many components that must work seamlessly together, like a Swiss watch. The Exchange must also be able to handle a constant flow of data and present it in an easy-to-use interface. Additionally, it must be able to operate on multiple blockchains and provide accurate and instant information. However, these are just the core functions of a crypto exchange. Another important aspect is managing user accounts and transactions, including the generation and management of wallets, setting up notifications for different events, and facilitating the transfer of funds. Imagine having to create everything from the scratch for each project, it would be a daunting and time-consuming task. Fortunately, APIs come to the rescue by simplifying the development process and enabling us to work more efficiently and quickly.

## **How to get Bitpowr API services?**

Bitpowr provides a comprehensive institutional wallet and digital asset management solution for exchanges, payment gateways, Neobanks, and other financial institutions. We recently redesigned and simplified our [API documentation](https://docs.bitpowr.com/reference/api-overview) to make it easier for developers to integrate with our APIs and SDKs.

## **Why use Bitpowr Wallet API**

### 1. **Ease for Developers**

Developers can use our infrastructure, SDK, and powerful unified API to quickly and easily build blockchain apps. You don't have to worry about blockchain node configuration or maintenance, nor do you have to learn to code for specific blockchains. We've taken care of everything so you can focus on developing blockchain apps.

### 2. **Easily generate unique hot addresses for multiple users**.

With the Generate Address Endpoint, private-public key-pairs can be generated along with an associated public address. An effective way to use this endpoint is to generate a pool of addresses that are saved in the database. Every user that wants to deposit funds will be assigned one of these pre-generated addresses. A limit can also be set up: when the addresses that are not associated with any user are below a certain number, more can be automatically generated. This will ensure a certain number of available addresses per currency at all times.

### 3. **Easy-to-use Webhooks**

Webhooks are sometimes called "reverse APIs". The reason for this nickname is that a Webhook, unlike an API, pushes data instead of waiting for it to be polled. This makes life much simpler! You will not need to check every few minutes or seconds to see if a certain event has happened. Instead, the webhook will notify you that the event has taken place once all the defined criteria are met.

Bitpowr Wallet APIs offer a series of Webhooks that can be subscribed to and used. In this case, the Create Transaction Confirmations Webhook can be subscribed to. Notifications are received every time there are incoming or outgoing transactions from one of the assigned hot wallets. No deposit or transaction will be missed.

### 4. **Multiple Blockchain Support**

You can incorporate many blockchains into your projects or switch between them using the Bipowr API with hardly any code modifications. Instead of starting from scratch to write the blockchain integration, you can switch to a different blockchain in a matter of minutes depending on your use case.

### 5. **Scalability**

The global transaction rate for the bitcoin and Ethereum blockchains is currently very low and each on-chain transaction involves high costs. However, it's not always necessary to keep all the data on-chain. Bitpowr has developed virtual accounts to address scalability difficulties that can settle transactions independently of the blockchain and synchronize with any compatible blockchain on a regular basis.

### **Start building right away!**

Check out our [documentation](https://docs.bitpowr.com/docs) to learn more about Bitpowr wallet services and other related products.

Contact [sales](https://sales@bipowr.com/) to get started!

Learn how integrating Bitpowr wallet APIs can accelerate and streamline the development of your product.

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Use Bitpowr wallet APIs to Scale your Blockchain Products. 

API is the acronym for ***Application Programming Interface.*** The world is rapidly becoming an "API-powered economy" worth trillions of dollars. APIs allow software programs to communicate with one another by retrieving and interpreting data based on the user's needs, which simplifies a lot of development work. 

**A brief History**: APIs first appeared in computing history, long before the personal computer. An API was typically used as a library for operating systems at the time. Although it occasionally passed messages between mainframes, the API was almost always local to the systems on which it operated. APIs emerged from their confines after nearly 30 years. They started becoming an important technology for remote data integration by the early 2000s.

### **Here is how APIs work.**

When you use a mobile phone application, it connects to the Internet and sends data to a server. The server then retrieves that data, interprets it, takes the appropriate actions, and sends it back to your phone. The application then interprets that data and displays the information you requested in a readable format. In simple terms that is how APIs work.

There are four different ways that APIs can work depending on when and why they were created.

**REST APIs:** These are the most popular and flexible APIs found on the web today. REST stands for Representational State Transfer. REST defines a set of functions like GET, PUT, DELETE, etc. that clients can use to access server data. The client sends requests to the server as data. The server uses this client input to start internal functions and returns output data back to the client.

**Websocket APIs:** [Websocket API](https://docs.aws.amazon.com/apigateway/latest/developerguide/apigateway-websocket-api-overview?pg=wianapi&cta=websocketapi) is another modern web API development that uses JSON objects to pass data. A WebSocket API supports two-way communication between client apps and the server. The server can send callback messages to connected clients, making it more efficient than REST API.

**SOAP APIs:** These APIs make use of SOAP (Simple Object Access Protocols), and it works with XML(***extensible markup language***) only. It is used by both the client and the server to exchange messages. This is a less flexible API that was once popular, we now have better ones.

**RPC APIs:** These APIs are referred to as Remote Procedure Calls. The client performs a function (or procedure) on the server, and the server returns the result to the client.

### **What are the different types of APIs?**

APIs are classified based on their architecture and intended use. We've already discussed the various types of API architectures, so let's take a look at the types of APIs: open APIs, partner APIs, internal APIs, and composite APIs.

1. **Public/Open APIs**

These are open to the public and may be used by anyone. There may or not be some authorization and cost associated with these types of APIs. Making APIs public has several benefits, the most important of which is the ability to freely share data. This encourages any external business or developer to integrate with the app that owns the API, increasing the value of both the third-party software and the API. Third parties benefit from the open API's lack of restrictions and ease of implementation.

1. **Partner APIs**

With this access is restricted to authorized clients with official licenses, so **[security measures](https://blog.hubspot.com/website/api-security)** with partner APIs tend to be stronger than with public APIs. Some companies prefer partner APIs because they want more control over who can access their resources and more say over how those resources are used. Pinterest, for example, took a submission-based approach to granting partners access to new data services via its API, requiring partners to submit a request detailing how they intend to use the API before being granted access.

1. **Internal APIs**

Internal APIs (also known as private APIs) are not intended for use by third parties, unlike open APIs and partner APIs. Internal APIs are only available for use within a company and are designed to streamline data transfers between teams and systems. These APIs are available to internal company developers, but not to external developers.

Internal APIs are frequently completely hidden from the public because they are not documented in a publicly released software development kit (or at all in some cases). However, many businesses eventually make their internal APIs public.

Using APIs for internal data transfers is thought to be more efficient, secure, and traceable. It is also a scalable solution, as when a company introduces a new internal system, this system can communicate with existing systems.

1. **Composite APIs**

Composite APIs combine multiple APIs, allowing developers to group calls or requests and receive a single unified response from multiple servers. A composite API would be used if you needed data from multiple applications or data sources. Alternatively, you can use a composite API to initiate a chain of calls and responses without your intervention.
Composite APIs, by reducing the total number of API calls, can result in less server load and overall faster systems, as well as reduced system complexity. They're frequently used in **[microservices](https://blog.hubspot.com/website/microservices-vs-api)**, where one job may require data from multiple internal APIs to complete.
Consider the following Stoplight example: Assume you want to place an order using a shopping cart API. You might believe that all it takes is one request. However, several requests must be made. You must first create a customer profile. Then you must create the order, add an item, add another, and change the order's status. Instead of making five separate API calls in quick succession, a composite API allows you to make just one.

**What is an API gateway?**

An API Gateway is an API management tool for enterprise clients that use a broad range of back-end services. API gateways typically handle common tasks like user authentication, statistics, and rate management that are applicable across all API calls.

**What is GraphQL?**

GraphQL is a query language designed specifically for APIs. It prioritizes providing clients with only the information they require. It is intended to make APIs more responsive, flexible, and developer-friendly. GraphQL, as an alternative to REST, allows front-end developers to query multiple databases, microservices, and APIs using a single GraphQL endpoint. Organizations choose GraphQL to build APIs because it allows them to develop applications more quickly. [Read more about GraphQL here](https://aws.amazon.com/graphql/).

**APIs vs webhooks**

A webhook is a lightweight, event-driven communication channel between two APIs. Webhooks are commonly used by web apps to receive small amounts of data from other apps, but they can also be used to trigger automation workflows in GitOps environments.

Because they place the responsibility of communication on the server rather than the client, webhooks are also known as reverse APIs or push APIs. Instead of the client sending HTTP requests—asking for data until the server responds—the server sends a single HTTP POST request to the client as soon as the data is available. Webhooks, despite their moniker, are not APIs; they collaborate. In order to use a webhook, an application must have an API.

### **The Future**

There are several trends that are likely to shape the future of APIs which are:

**Increased use of microservices:** Microservices is a software architectural style that involves building a single application as a suite of small, independent services. APIs play a key role in the communication between these services, and the use of microservices is likely to continue to grow in the future as it allows for more flexible and scalable systems.

**Increased use of cloud-based APIs:** Many organizations are moving their systems to the cloud, and APIs will play a key role in allowing these systems to communicate with each other and with on-premises systems. Cloud-based APIs are likely to become more common as organizations seek to take advantage of the scalability and flexibility of the cloud.

**Increased focus on security:** As more and more sensitive data is shared through APIs, there will be a greater focus on securing these interfaces to protect against unauthorized access and data breaches. This will likely involve the use of stronger authentication and authorization measures, as well as increased use of encryption to protect data in transit.

**The continued evolution of API standards:** There are a number of different standards for building and consuming APIs, and these standards are likely to continue to evolve as the needs of developers and organizations change. This could involve the development of new standards or the adoption of existing standards by a wider community of users.

### **Conclusion**

Overall, APIs will continue to be a key part of the technology landscape, and their importance is likely to grow as more organizations adopt cloud-based systems and build complex software systems using microservices.

Bitpowr also provides a  simplified [API](https://docs.bitpowr.com/reference/api-overview) service to make it easier for developers to integrate with crypto. We also offer a comprehensive institutional wallet and digital asset management solution for exchanges, payment gateways, Neobanks, and other financial institutions. [Reach out for](https://bitpowr.com/contact-sales) more information on these services.

An overview of API, what they are, the different types and their overall usefulness. 

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What are APIs

We are always working to improve our product by including functionalities that will enable you to achieve your business goals in the easiest and most secure way possible. In line with this commitment, we are excited to introduce a new feature on your Bitpowr dashboard: the activity log page.

You can now view a detailed chronological breakdown of all key activities carried out on your [Bitpowr dashboard in one place](https://bitpowr.com/contact-us). 

![Activity log 1.png](https://res.cloudinary.com/samvwede/image/upload/v1675658001/Activity_log_1_1831e3dceb.png)

As a business, it's critical that you can keep track of what's happening on your digital asset management account including what other users are doing and other vital details.

This is crucial as such records can serve as audit logs in case of any incident. This is why we've designed the activity log page to include all vital details of user activity on your Bitpowr dashboard.

From the activity log page, you can see a list of all actions carried out and filter them by user and date. You can also search for a specific task like who sent what to a particular address.

![Activity log 2.png](https://res.cloudinary.com/samvwede/image/upload/v1675658001/Activity_log_2_c1a2e3a5e8.png)

On top of that, clicking on each activity provides more information about the task, including details about the user, the action carried out and the IP of the user when that specific event happened.

![Activity log 3.png](https://res.cloudinary.com/samvwede/image/upload/v1675658002/Activity_log_3_46cf9b3828.png)

[Explore the activity log page](https://bitpowr.com/contact-us) and let us know what you think! We remain committed to delivering all the tools you need to seamlessly and securely manage your digital asset operations.

Find out how to see a detailed breakdown of all actions carried out on your Bitpowr account.

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Introducing Activity Log Page on Bitpowr

Proof of Reserve is a cryptographic technique that allows a person or organization to prove that they have a certain amount of a particular asset without revealing their exact holdings. This can be useful for exchanges, banks, and other institutions that want to demonstrate their solvency or financial strength without revealing sensitive information about their holdings.

### **How does it work?**

Proof of reserve can be demonstrated in a number of different ways, depending on the type of asset being held. For example, a person or organization holding Bitcoin can use a technique called "Merkle trees" to prove that they have a certain amount of Bitcoin without revealing their exact holdings. 

This involves creating a tree-like structure with a series of hashes, with each hash representing a small amount of Bitcoin. By revealing only a few of the hashes in the tree, the person or organization can prove that they have a certain amount of Bitcoin without revealing their exact holdings.

Another way to demonstrate proof of reserve is through the use of cryptographic signatures. In this case, the person or organization holding the assets creates a digital signature for each small amount of the asset and then reveals a selection of these signatures to prove that they have a certain amount of the asset without revealing their exact holdings.

Overall, proof of reserve is an important tool for demonstrating solvency and financial strength in the cryptocurrency industry. By allowing exchanges and other institutions to prove that they have sufficient reserves without revealing sensitive information, proof of reserve helps to maintain trust and confidence in the industry.

### **Why Proof of Reserve (PoR)?**

Proof of Reserve is particularly important in the cryptocurrency industry, where many exchanges and other institutions hold large amounts of digital assets on behalf of their customers. In the past, there have been instances of exchanges failing to maintain adequate reserves, leading to financial losses for customers and damaging the reputation of the industry as a whole.

The recent collapse of FTX, a cryptocurrency exchange, has highlighted the importance of implementing "proof of reserves" (PoR) to prove that exchanges and other institutions actually hold the assets they claim to hold. PoR is a cryptographic technique that allows institutions to demonstrate that they have a certain amount of assets without revealing their exact holdings. This can help restore trust in the industry and prevent incidents like the FTX collapse. 

Several exchanges and other institutions, including Kraken, BitMex, and CakeDeFi, have recently conducted PoR attestations, and others, including Binance and Huobi, have announced plans to do so in the near future. However, broader adoption of PoR is still needed to gradually expand the level of trust in the industry.

### **How important is Proof of Reserve?**

One recent example of the importance of Proof of Reserve came to light during the FTX saga, which involved allegations of insider trading and manipulation of cryptocurrency prices on the FTX exchange. In this case, the lack of transparency around the exchange's holdings raised concerns about the integrity of its operations and the security of its customer's funds.

The concept of Proof of Reserve is closely related to that of liquidity, which refers to the ability of a company to buy or sell assets quickly and at a fair price. In the case of a cryptocurrency exchange, liquidity is important because it allows customers to buy and sell cryptocurrencies without having to worry about the exchange running out of funds or experiencing delays in processing their trades.

One way that exchanges can demonstrate Proof of Reserve is by publishing regular audits of their holdings, which can provide transparency and reassurance to customers. This practice is not without its challenges, however, as audits can be costly and time-consuming to conduct, and there may be concerns about the potential for audits to be manipulated or falsified.

### **Conclusion**

Despite these challenges, Proof of Reserve is an important concept in the cryptocurrency industry, as it helps to build trust and confidence in the operations of exchanges and other companies that hold large amounts of digital assets. 

In the wake of the FTX saga and other instances of alleged misconduct in the industry, it is more important than ever for exchanges and other companies to be transparent about their holdings and to demonstrate that they have the resources to meet their obligations to customers.

There has been more emphasis on proof of reserve recently, here's what the concept actually means.

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Understanding Proof of Reserve and its Importance

Market capitalization (or market cap) refers to the total dollar market value of a company's outstanding shares of stock. For crypto markets, market capitalization is calculated by multiplying the number of coins mined by the price per coin. Think of market cap as a rough indicator of a certain asset's stability.

Even Bitcoin experiences volatility. Although cryptocurrencies with a much larger market cap have a greater chance of being a more stable investment than those with much smaller market caps. In contrast, digital currencies with smaller market caps are more prone to market fluctuations and can experience substantial gains as well as losses.

In some instances, you might see references to both "circulating supply" and "fully diluted supply" market caps. In the case of Bitcoin, you can use either the 18.5 million that have already been mined ("circulating supply") or the 21 million that will eventually be mined ("fully diluted supply"). Observers use different methodologies to calculate market cap: some will use the fully diluted number or the circulating supply.

### **What can you do with Market Cap?**

Market cap helps to compare the total value of one cryptocurrency with another for a more informed investment decision. Cryptocurrencies are divided into three categories based on their market capitalization:

**Large-cap cryptocurrencies** are generally regarded as safe crypto investments. These are companies with a market cap exceeding $10 billion. Coins with a large market capitalization are typically a conservative investment strategy. There is a likelihood that these coins will be less volatile than other cryptocurrencies, but still more volatile than traditional assets.

**Mid-cap cryptos** have higher volatility but also higher growth potential than large-cap cryptos.

**Small-cap cryptos** all have high volatility and are considered highly risky investments. ****They may, however, offer potential for short-term growth. It is also essential to keep in mind that they may crash at any moment.

It is always best to do thorough research before investing in cryptocurrencies and to consider all important factors.

### **Why is Market Capitalization important?**

Market capitalization is a metric that measures and monitors the market value of a cryptocurrency. A cryptocurrency's price is just one way to measure its value. Additionally, market capitalization can reveal trends. It provides a more comprehensive picture of cryptocurrency value, and it is used by investors to compare cryptocurrencies.

As a key statistic, it can indicate a cryptocurrency's growth potential and determine if it is safe to buy in comparison to others. Nevertheless, it is important to note that the market cap of many cryptocurrencies can fluctuate dramatically due to their volatility.

**Get in Touch**

Bitpowr integrates with several blockchains and supports multiple cryptocurrencies. What’s more? Our system provides price data that powers seamless digital asset trading for exchanges that integrate with us. [Come talk to us](https://bitpowr.com/contact-sales) to learn how we can power digital assets for your business.

Our blog

Resources and insights

Understanding Market Capitalization?

Crypto APIs for Developers

How to Choose the Right Blockchain Infrastructure Provider

Two-Factor Authentication now live on Bitpowr

Bitpowr Integrates USDT Stablecoin on Binance Smart Chain

Blockchains With the Highest Transaction Speed

Custodial and Non-Custodial Wallets: Which is best for your Business?

Dispelling Common Myths Regarding Bitcoin.

What is Stellar

Use Bitpowr wallet APIs to Scale your Blockchain Products.

What are APIs

Introducing Activity Log Page on Bitpowr

Understanding Proof of Reserve and its Importance

Understanding Market Capitalization?

Crypto APIs for Developers

How to Choose the Right Blockchain Infrastructure Provider

Two-Factor Authentication now live on Bitpowr

Bitpowr Integrates USDT Stablecoin on Binance Smart Chain

Blockchains With the Highest Transaction Speed

Custodial and Non-Custodial Wallets: Which is best for your Business?

Dispelling Common Myths Regarding Bitcoin.

What is Stellar

Use Bitpowr wallet APIs to Scale your Blockchain Products.

What are APIs

Introducing Activity Log Page on Bitpowr

Understanding Proof of Reserve and its Importance

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