3.2. Generating Addresses

When generating an address, you have the option to choose between 3 security models:

• 1: 81-trit security (low)

• 2: 162-trit security (medium)

• 3: 243-trit security (high)

We advise exchanges to use level 3 security (243-trit) for all addresses that are generated for hot, cold wallet, multisignatures and for addresses for user deposits.

In addition to that, when it comes to addresses that are being used for back-end (internal shuffling around of balances) and front-end (user deposits), we advise exchanges to always generate and enforce address checksums. Check the respective utility functions addChecksu and isValidChecksum