Recently, we changed Ethereum deposit addresses on CEX.IO. This was part of a broader change in Ethereum processing. Now, we’re happy to introduce support for ETH deposits sent through smart contracts.
Smart contract support
Many exchanges and wallets still don’t support Ethereum transactions via smart contracts. Still, the demand for these transactions is rather high. But without specific technology, smart contract transactions need to be processed manually, which had been the case on CEX.IO. This meant that users had to wait for their funds to reach their accounts.
We understand that delays in the delivery of funds are inconvenient, so we had been looking for a solution. Now, CEX.IO is accepting ETH deposits sent through smart contracts. You can be confident that your Ethereum will always reach your CEX.IO account in the shortest time possible no matter how you send the funds. This is also true for sending ETH from other exchanges.
We would like to emphasize that only Ethereum can now be sent to CEX.IO via smart contract. You still cannot send any ERC-20 tokens as our wallets do not support them. Currently, the only cryptocurrency you can use with smart contracts on CEX.IO is Ethereum.
What are smart contracts?
Smart contracts are an essential feature of the Ethereum network. They’re self-executing contracts that control the movement of digital currencies between parties. This feature has made Ethereum one of the biggest breakthroughs in the crypto space.
Since the concept was introduced, smart contracts have been used by Ethereum network users to send ETH. However, smart contracts are technically different from standard cryptocurrency transactions.
Making transactions on the Ethereum network
On the Ethereum network, users have two options for sending their assets.
- Send ETH from a standard account address. In this case, the user controls personal funds with a private key.
- Use a contract address to send ETH. In this case, smart contract code controls the transfer.
In some wallets, you can choose between these two options.
Sending ETH via smart contract
While sending ETH seems simple, it’s crucial to understand that sending by smart contract is different than sending by a usual transaction. Here are several particularities of sending funds by smart contract:
- Transactions sent via smart contracts are internal transactions, and identifying the sender is often complicated.
- Contract transactions are not stored on the Ethereum blockchain, which is why it requires extra effort and tools to support them.
- Using smart contracts to send funds requires more ETH. Creating regular ETH addresses costs nothing, while you need to pay for contract addresses.
Using smart contracts to send Ethereum may be seen as adding an extra level of security to the transfer. Still, sending ETH via smart contracts may require additional transaction costs or entail other special requirements.
These features make supporting smart contract transactions more complicated.
Looking to the future
As the whole cryptocurrency sphere moves forward, we understand that solving more complicated tasks is essential to progress. Our newly added support for Ethereum smart contracts will allow us to add support for tokens based on the ERC-20 standard in future. This current technological solution will become the basis for new opportunities on the platform.
We hope that the ability to transfer funds using smart contracts will improve your experience with CEX.IO and allow for more flawless transactions. There’s much to come, so stay tuned for our updates.