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Mikko Ohtamaa
Mikko Ohtamaa
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Kraken vs. Bitstamp Exchange deposits using smart contracts and Binance in Handling User Depositsexternally owned accounts

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S.O.S
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I wasWhile researching on how different exchanges handle user deposit.deposits, I foundnoticed a stark contrast in the approach taken by differentbetween several prominent exchanges.

Kraken:

Exchanges like Kraken use newly generated deposit addresses (no smart contract)

Bitstamp and Binance:

Exchanges like Bitstamp and Binance have client smart contracts. In other words, the customer has a dedicated address to deposit all ERC-20 related tokens to it. This wallet though has to first go through a smart contract wallet that is owned from the exchange

Bittrex:

Warning - sending ETH to Bittrex is a smart contract invocation.. So here's what I found after a friend asked for help.. When you ask for deposit address in Bittrex, what happens behind the scenes is that a new instance of smart contract is created just for you..

Why do some exchanges choose to generate a new deposit address for each customer while others choose to move it through a smart contract first? What are the benefits/drawbacks of each approach?

I was researching on how different exchanges handle user deposit. I found a stark contrast in the approach taken by different exchanges.

Kraken:

Exchanges like Kraken use newly generated deposit addresses (no smart contract)

Bitstamp and Binance:

Exchanges like Bitstamp and Binance have client smart contracts. In other words, the customer has a dedicated address to deposit all ERC-20 related tokens to it. This wallet though has to first go through a smart contract wallet that is owned from the exchange

Bittrex:

Warning - sending ETH to Bittrex is a smart contract invocation.. So here's what I found after a friend asked for help.. When you ask for deposit address in Bittrex, what happens behind the scenes is that a new instance of smart contract is created just for you..

Why do some exchanges choose to generate a new deposit address for each customer while others choose to move it through a smart contract first? What are the benefits/drawbacks of each approach?

While researching how different exchanges handle user deposits, I noticed a stark contrast between several prominent exchanges.

Kraken:

Exchanges like Kraken use newly generated deposit addresses (no smart contract)

Bitstamp and Binance:

Exchanges like Bitstamp and Binance have client smart contracts. In other words, the customer has a dedicated address to deposit all ERC-20 related tokens to it. This wallet though has to first go through a smart contract wallet that is owned from the exchange

Bittrex:

Warning - sending ETH to Bittrex is a smart contract invocation.. So here's what I found after a friend asked for help.. When you ask for deposit address in Bittrex, what happens behind the scenes is that a new instance of smart contract is created just for you..

Why do some exchanges choose to generate a new deposit address for each customer while others choose to move it through a smart contract first? What are the benefits/drawbacks of each approach?

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S.O.S
S.O.S
  • 191
  • 1
  • 2
  • 11

Kraken vs. Bitstamp and Binance in Handling User Deposits

I was researching on how different exchanges handle user deposit. I found a stark contrast in the approach taken by different exchanges.

Kraken:

Exchanges like Kraken use newly generated deposit addresses (no smart contract)

Bitstamp and Binance:

Exchanges like Bitstamp and Binance have client smart contracts. In other words, the customer has a dedicated address to deposit all ERC-20 related tokens to it. This wallet though has to first go through a smart contract wallet that is owned from the exchange

Bittrex:

Warning - sending ETH to Bittrex is a smart contract invocation.. So here's what I found after a friend asked for help.. When you ask for deposit address in Bittrex, what happens behind the scenes is that a new instance of smart contract is created just for you..

Why do some exchanges choose to generate a new deposit address for each customer while others choose to move it through a smart contract first? What are the benefits/drawbacks of each approach?