Address Generation

Understand how cryptocurrency addresses are generated and managed in U.Cash for secure payment processing.

How Address Generation Works

U.Cash supports multiple address generation methods to ensure privacy, security, and flexibility for your payment processing:

  • Static Addresses: Use predefined addresses from your wallet
  • Dynamic Generation: Automatically generate unique addresses per transaction
  • Node-Based: Generate addresses directly from your blockchain node
  • Exchange Integration: Use Gemini or Coinbase address generation

Why Dynamic Addresses?

Using unique addresses for each payment provides:

  • Enhanced privacy for your customers
  • Easier payment tracking and reconciliation
  • Compliance with financial privacy standards
  • Better user experience with dedicated payment addresses

Static Addresses

The simplest method - use your existing cryptocurrency addresses for all payments.

Configuration

  1. Navigate to Settings → Cryptocurrency Addresses
  2. Enter your wallet addresses for each supported cryptocurrency
  3. Save your settings

Pros & Cons

  • Pros: Simple setup, no additional configuration needed
  • Cons: All payments go to same address, reduced privacy
ℹ️ Note: Static addresses are recommended for testing or low-volume scenarios. For production use, consider dynamic address generation.

Dynamic Address Generation

Automatically generate unique addresses for each payment transaction.

Configuration

  1. Navigate to Settings → Stop Reusing Addresses
  2. Enable the option to activate dynamic generation
  3. Configure your preferred generation method

Address Reuse Prevention

When enabled, U.Cash will:

  • Generate a new address for each payment
  • Stop reusing addresses after 24 hours
  • Track which addresses have been used
  • Maintain a pool of available addresses

Supported Cryptocurrencies

Dynamic generation supports all major cryptocurrencies:

  • Bitcoin (BTC) - Legacy, SegWit, Native SegWit
  • Ethereum (ETH) and ERC-20 tokens
  • Litecoin (LTC)
  • And 30+ other cryptocurrencies

Node-Based Generation

Generate addresses directly from your connected blockchain nodes for maximum control.

Bitcoin Node Generation

  1. Navigate to Settings → Bitcoin Node
  2. Enable Address Generation
  3. Select Address Generation Method: Default or Via node
  4. Provide your wallet's Xpub key for HD wallet support

Ethereum Node Generation

  1. Navigate to Settings → Ethereum Node
  2. Enable Address Generation
  3. Ensure your node has wallet functionality enabled

Benefits

  • Full control over address generation
  • No third-party dependencies
  • Support for HD wallets (BIP32/BIP44)
  • Can generate thousands of addresses

Exchange Integration

Use Gemini or Coinbase for address generation and payment processing.

Gemini Integration

  1. Navigate to Settings → Gemini
  2. Enable Address Generation
  3. Enter your Gemini API credentials
  4. Select sandbox mode for testing

Coinbase Integration

  1. Navigate to Settings → Coinbase
  2. Enable Address Generation
  3. Configure your Coinbase API keys and 2FA

Benefits

  • Instant conversion to fiat or stablecoins
  • Automatic transfer to exchange wallet
  • Simplified accounting and reconciliation
  • Professional exchange infrastructure

Hierarchical Deterministic (HD) Wallets

U.Cash supports BIP32/BIP44 HD wallets for secure address generation.

How HD Wallets Work

  • Single master key generates unlimited addresses
  • Each address is unique but derived from same seed
  • Backup seed once, recover all addresses
  • Industry standard for cryptocurrency wallets

Configuration with Xpub

To use HD wallet generation:

  1. Generate an HD wallet (using Electrum, Ledger, etc.)
  2. Extract your extended public key (Xpub)
  3. Enter the Xpub in node configuration
  4. U.Cash generates addresses using derivation path

Derivation Paths

Standard BIP44 derivation paths are used:

  • Bitcoin: m/44'/0'/0'/0/0
  • Litecoin: m/44'/2'/0'/0/0
  • Ethereum: m/44'/60'/0'/0/0

Address Lifecycle

Understanding how addresses are managed throughout their lifecycle.

1. Generation

Addresses are generated when:

  • A new payment is created
  • Address pool is running low
  • Manual generation in admin panel

2. Assignment

Generated addresses are:

  • Linked to a specific transaction/order
  • Stored in database for tracking
  • Displayed to customer for payment

3. Monitoring

U.Cash monitors addresses for:

  • Incoming transactions
  • Confirmation counts
  • Transaction completion

4. Reuse Prevention

After a payment:

  • Address is marked as used
  • Won't be reassigned (if enabled)
  • New address generated for next payment

Best Practices

  • Use dynamic addresses for production environments
  • Test thoroughly before going live with any generation method
  • Backup seed phrases for HD wallets securely
  • Monitor address pool to prevent running out of addresses
  • Use testnets when testing new configurations
  • Secure your Xpub - while it's public, keep it safe
  • Document your setup for team members and troubleshooting
  • Regular audits of generated addresses and transactions

Troubleshooting

Address Generation Fails

  • Check node connection and RPC access
  • Verify Xpub key is correct
  • Ensure wallet is unlocked (Bitcoin Core)
  • Check API credentials (Gemini/Coinbase)

Addresses Not Tracking

  • Verify blockchain explorer API is working
  • Check network connectivity
  • Review transaction hash format
  • Allow time for blockchain confirmation

Running Out of Addresses

  • Check address generation is enabled
  • Verify derivation path is correct
  • Monitor address pool usage
  • Consider gap limit adjustments