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Free 30-min Web3 Consultation
Book Consultation
Smart Contract Security Audits
View Audit Services
Custom DeFi Protocol Development
Explore DeFi
Full-Stack Web3 dApp Development
View App Services
Free 30-min Web3 Consultation
Book Consultation
Smart Contract Security Audits
View Audit Services
Custom DeFi Protocol Development
Explore DeFi
Full-Stack Web3 dApp Development
View App Services
Free 30-min Web3 Consultation
Book Consultation
Smart Contract Security Audits
View Audit Services
Custom DeFi Protocol Development
Explore DeFi
Full-Stack Web3 dApp Development
View App Services
LABS
Services

Tax Reporting Engine for Bitcoin & Lightning

Automated calculation of capital gains, losses, and income events across Bitcoin L1 and Lightning Network, generating compliant tax reports and audit trails for individuals and businesses.
Chainscore © 2026
overview
CORE SERVICE

Smart Contract Development

Secure, production-ready smart contracts built for scale and compliance.

We architect and deploy custom smart contracts that form the operational backbone of your Web3 application. Our development process is built on security-first principles, utilizing audited libraries like OpenZeppelin and rigorous testing frameworks to mitigate risk before mainnet deployment.

Deliver a market-ready product in 4-6 weeks with a battle-tested foundation, not a vulnerable prototype.

  • Full Lifecycle Development: From Solidity/Rust coding and unit testing to deployment on EVM/Solana and post-launch monitoring.
  • Security & Compliance: Integration of access controls, pause mechanisms, and upgradability patterns (Proxy/Diamond) to meet regulatory and operational needs.
  • Gas Optimization: Expert-level code reviews to reduce transaction costs by 20-40%, directly impacting your end-users.
key-features-cards
benefits
STRATEGIC ADVANTAGES

Business Outcomes: Beyond Compliance

Our Tax Reporting Engine for Bitcoin & Lightning delivers more than just regulatory compliance. It unlocks new revenue streams, enhances user trust, and provides the data intelligence needed to scale your financial product.

01

Revenue Diversification

Turn compliance from a cost center into a revenue stream. Offer premium tax reporting as a paid service to your user base, creating a new, high-margin SaaS revenue line. Our white-label solution enables seamless integration with your existing billing.

New ARPU
Revenue Stream
SaaS Model
Recurring Revenue
02

Enhanced User Trust & Retention

Provide users with crystal-clear, audit-ready transaction histories. This transparency reduces support tickets, builds long-term loyalty, and directly combats churn by making your platform indispensable for their financial management.

> 40%
Support Ticket Reduction
Increased LTV
User Retention
03

Data-Driven Product Insights

Gain unparalleled visibility into user transaction patterns, asset holdings, and on-chain behavior. Use this aggregated, anonymized data to inform product development, marketing strategies, and personalized financial services.

Real-Time
Portfolio Analytics
Anonymized
Behavioral Data
04

Operational Efficiency & Scalability

Automate the entire tax data lifecycle—from on-chain ingestion to report generation. Eliminate manual reconciliation, reduce operational overhead, and scale seamlessly to handle millions of transactions without increasing headcount.

> 90%
Process Automation
Linear Scaling
Infrastructure
05

Regulatory Future-Proofing

Our engine is built on a flexible rule engine that adapts to evolving global tax regulations (FIFO, LIFO, HIFO, ACB). Stay ahead of new reporting requirements like DAC8 and MiCA without costly re-engineering.

Global
Regime Coverage
Dynamic Rules
Future Compliance
06

Enterprise-Grade Security & Audit Trail

Every calculation is cryptographically verifiable and stored with a complete audit trail. Our SOC 2 Type II compliant infrastructure ensures data integrity and provides the evidence needed for financial audits and regulatory examinations.

SOC 2 Type II
Compliance
Immutable
Audit Trail
The Infrastructure Decision for Your Tax Engine

Build vs. Buy vs. Chainscore Development

Choosing the right path for your Bitcoin and Lightning tax reporting infrastructure impacts your time-to-market, compliance risk, and total cost of ownership. This comparison outlines the trade-offs.

Key FactorBuild In-HouseBuy Off-the-ShelfChainscore Development

Time to Production

6-12+ months

4-8 weeks (integration)

4-8 weeks (custom build)

Initial Development Cost

$200K - $500K+

$50K - $150K (license + setup)

$75K - $200K (project)

Coverage: Bitcoin (On-Chain)

Coverage: Lightning Network

High Complexity

UTXO & Coin Control Logic

You build it

Limited / Generic

Custom & Optimized

Compliance (FIFO, LIFO, ACB)

Your responsibility

Pre-defined rules

Audited, custom rulesets

Security & Audit Status

Unaudited (High Risk)

Vendor-dependent

Formally audited codebase

Ongoing Maintenance Burden

Full team required

Vendor updates & fees

Optional SLA from $2K/month

Custom Business Logic

Full control

Not possible

Built to your spec

Scalability & Performance

Your problem to solve

Shared infrastructure limits

Dedicated, scalable architecture

how-we-deliver
A STRUCTURED APPROACH

Our Development & Integration Process

We deliver a production-ready tax reporting engine through a proven, four-phase methodology designed for security, compliance, and rapid deployment.

01

Architecture & Discovery

We analyze your transaction volume, user base, and compliance requirements to design a scalable architecture. This phase defines the data ingestion strategy for Bitcoin on-chain and Lightning Network data, ensuring the system meets your specific needs.

1-2 weeks
Scoping
100%
Requirements Lock
02

Core Engine Development

Our engineers build the core tax logic, implementing FIFO, LIFO, and specific identification methods. We develop robust parsers for Bitcoin UTXOs and Lightning channel states, with automated cost-basis tracking and wash sale detection.

3-4 weeks
Build Time
Zero
Logic Gaps
03

Security & Compliance Audit

Every calculation module and data pipeline undergoes rigorous internal review and external smart contract auditing. We ensure the reporting logic aligns with evolving global standards (IRS, MiCA) and financial regulations.

Certified
Security Review
100%
Audit Coverage
04

Deployment & Integration

We deploy the engine to your cloud environment (AWS/GCP) and integrate it with your existing wallets, exchanges, and front-end applications via secure APIs. Includes full documentation and handover to your engineering team.

< 1 week
Go-Live
24/7
Launch Support
Tax Reporting Engine

Frequently Asked Questions

Get clear answers about our Bitcoin & Lightning tax reporting solution, from implementation to compliance.

A standard integration for a single exchange or wallet takes 2-3 weeks. For a full-stack implementation connecting to multiple data sources (e.g., on-chain, Lightning Network, multiple exchanges), the timeline is typically 4-6 weeks. We provide a detailed project plan after the initial discovery call.

ENQUIRY

Get In Touch
today.

Our experts will offer a free quote and a 30min call to discuss your project.

NDA Protected
24h Response
Directly to Engineering Team
10+
Protocols Shipped
$20M+
TVL Overall
NDA Protected Directly to Engineering Team