Ethereum (ETH) Exchange Wallet Development - Part 1: Address Creation

Understanding the Deposit Process

The deposit workflow for an exchange can be visualized through the following sequence:

1. Deposit/Withdrawal Service (Core component requiring development)

2. Key functionalities for deposit handling:

   • Generating unique deposit addresses for users
   • Monitoring address transactions
   • Consolidating funds to cold wallets

This guide focuses on creating unique deposit addresses.

Database Structure Design

We recommend pre-generating addresses and storing them in a database table with this schema:

CREATE TABLE `t_address_key` (
  `id` bigint(20) unsigned NOT NULL AUTO_INCREMENT,
  `address` varchar(64) NOT NULL COMMENT 'Ethereum address',
  `pwd` varchar(512) NOT NULL COMMENT 'Encrypted private key',
  `use_tag` int(11) NOT NULL DEFAULT '0' COMMENT 'Usage status: -1=hot wallet, 0=available, >0=user deposit address',
  PRIMARY KEY (`id`),
  UNIQUE KEY `id` (`id`),
  UNIQUE KEY `t_address_key_address_idx` (`address`) USING BTREE
) ENGINE=InnoDB DEFAULT CHARSET=utf8mb4;

Key Fields Explained

Address Allocation Workflow

When users request deposit addresses:

1. Query the database for records where use_tag = 0
2. Update the use_tag to 1 (or user ID)
3. Return the address to the user

👉 Learn advanced Ethereum address generation techniques

Implementation Notes

For creating Ethereum addresses programmatically, refer to fundamental cryptography principles covered in our Ethereum Introduction Guide.

Complete Code Implementation

Access the functional implementation here:
https://github.com/moremorefun/go-dc-wallet

FAQ Section

Why pre-generate addresses?

Pre-generation enhances system performance by eliminating real-time cryptographic operations during user requests.

How secure is the encrypted private key storage?

The symmetric encryption significantly reduces exposure risks, though we recommend additional HSMs for enterprise implementations.

Can addresses be reused?

Best practice dictates single-use addresses for better transaction tracking and auditability.

👉 Explore secure wallet management solutions

What happens if all pre-generated addresses are used?

Systems should include monitoring to trigger address pool replenishment before exhaustion.

How often should cold wallet consolidation occur?

This depends on exchange volume, but most implementations perform hourly or daily sweeps.

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