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With the decentralized nature of the blockchain space it makes sense for this to be a thing.

I need a wallet API service that does not store private keys, allows our servers to create a wallet & send and receive Ether & ERC20 tokens through an API calls.

I prefer something with all of the needs and it's decentralized.

I've considered just building a wallet service to meet my need. Would this be ape s@!# hard or pretty straight forward? My background is research side ML/AI and distributed systems. Any help would be appreciated thank you for your time.

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It sounds like Web3.js is sufficient for this. Create keys using Web3.js, sign transactions/messages with Web3.js, then connect to a node provider (likely Infura, but could be a local node as well) to send the transactions

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