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.
Tax Reporting Engine for Bitcoin & Lightning
Smart Contract Development
Secure, production-ready smart contracts built for scale and compliance.
Deliver a market-ready product in 4-6 weeks with a battle-tested foundation, not a vulnerable prototype.
- Full Lifecycle Development: From
Solidity/Rustcoding and unit testing to deployment onEVM/Solanaand 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.
Core Engine Capabilities
Our tax reporting engine is built from the ground up for the unique complexities of Bitcoin and Lightning Network transactions. We deliver the accuracy and auditability financial institutions require.
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.
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.
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.
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.
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.
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.
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.
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 Factor | Build In-House | Buy Off-the-Shelf | Chainscore 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 |
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.
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.
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.
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.
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.
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.
Get In Touch
today.
Our experts will offer a free quote and a 30min call to discuss your project.