What are Bitcoin Webhooks? Everything Web3 Developers Should Know About

What are Bitcoin Webhooks? Everything Web3 Developers Should Know About

By NOWNodes | NOWNodes | 28 Mar 2024

In the constantly changing world of crypto, where FOMO pursues you from day to day, it’s crucial to be informed about the latest essential news, events, and updates for both Web3 developers and crypto enthusiasts. Webhooks are one of the pivotal technologies that allow users to overcome such difficulties. It has transformed how servers and clients communicate, especially in decentralized applications. Understanding the work principles, use cases, and implementation strategies of this technology can significantly impact the success of your Web3 projects.

In this article, we are going to provide you with an explanation of what Webhooks are, how they work in the context of cryptocurrency and especially Bitcoin Blockchain, how to integrate them in dApps, and how to access them easily with the crypto API services and node providers like NOWNodes. 

What Are Webhooks?

Webhooks are automated messages sent from apps when some actions happen. 

Webhooks are essentially user-defined HTTP callbacks or “reverse APIs.” They are triggered by specific events and send data to a specified URL in response to these events. Webhooks are typically used for asynchronous, one-way communication from the server to a client or another server. When the event takes place, the source server makes an HTTP request to the URL configured for the webhook, sending a notification about the event.

Unlike traditional APIs where you have to continuously make requests for new data, webhooks allow you to receive data in real time. When an event occurs, such as a new transaction being confirmed on the blockchain, the webhook sends a POST request to a specified URL with the relevant data.

The event-specific data could be virtually anything: a customer submitting a form or making a purchase on a website and so on. In the context of crypto the most useful event triggers are: a transaction being confirmed, a specific address sending/receiving BTC, blocks being mined, or any other activity related to specific Bitcoin addresses.

In the world of Web3 – Decentralized Finance platforms, wallet services, and payment gateways are prime examples of dApps that utilize webhooks. These applications rely on webhooks to track transaction confirmations, payment receipts, and smart contract triggers, thereby ensuring timely updates and interactions with their users. Webhooks are also a perfect tool to be utilized in dApps that provide real-time Crypto Market Data via API.

How Do Bitcoin Webhooks Work?

Bitcoin webhooks are a powerful tool for Web3 developers, allowing them to build more responsive and interactive dApps by leveraging real-time notifications for Bitcoin blockchain events. They operate by listening for specific events on the Bitcoin blockchain, such as new transactions, block confirmations, or changes to a specific Bitcoin address. When such an event occurs, the webhook sends a real-time notification to a specified URL endpoint, which is typically the developer’s server or application backend.

Here’s a detailed step-by-step explanation of how Bitcoin Webhooks work:

  1. Subscription: To start using Bitcoin webhooks, a developer first subscribes to specific events they are interested in monitoring on the Bitcoin blockchain. This is usually done through a blockchain infrastructure provider or a Webhook API service that supports Bitcoin (like NOWNodes).
  2. Event Monitoring: The webhook service continuously monitors the Bitcoin blockchain for the subscribed events. This involves keeping track of new transactions, blocks, and any changes to watched addresses.
  3. Notifications: When the specified event occurs, like the balance of a specific address change, the webhook service instantly triggers an HTTP POST request to the developer’s specified callback URL. This request contains a payload with detailed information about the event, such as transaction details, block information, or address activity.
  4. Handling: The receiving server or application then processes this data according to its business logic. This could involve updating a user’s balance, executing further transactions, or triggering other actions within the dApp.

Using third-party API services and blockchain full node providers such as NOWNodes for your Bitcoin webhooks and Web3 development needs can truly benefit your dApps development process and crypto business. It’s not only saving your time and money, but it’s also one the most efficient and secure ways to access Bitcoin webhooks, without the need to run your own Bitcoin full node and setting up webhooks, allowing you to focus on what’s most important – building innovative dApps. 

How to Access Bitcoin RPC Full Node, Webhooks, and WSS with NOWNodes

NOWNodes is a blockchain-as-a-service solution that lets users get access to full Nodes and blockbook Explorers via API. The service provides a high-quality infrastructure that is quick, cost-effective, and reliable.

NOWNodes provides access to all the Bitcoin infrastructure. Anything you might need during your Web3 development process related to Bitcoin, We have to offer! From both the mainnet and testnet Bitcoin RPC Full Nodes and block explorers to Webhooks and Websockets, you can find it all and even more at NOWNodes

While interacting with the Bitcoin blockchain during your Web3 development process you’ll need to access the Bitcoin RPC Full Node. If you’re still choosing between running your own Bitcoin full node or using the NOWNodes node provider for your Bitcoin development needs, you can check out our developers’ guide on How to Run a Bitcoin Node. There you can find all the pros and cons of the two ways of accessing the Bitcoin blockchain with an easy explanation for each of them.

NOWNodes offers a straightforward way to access Bitcoin Webhooks services, providing developers with easy integration and high reliability. Here’s a simple step-by-step guide on how to set up Bitcoin Webhooks with NOWNodes: 

  1. Sign Up: Visit NOWNodes’ Website ( sign up for an account and verify it with your email address.
  2. Obtain an API key: once you’ve signed, the next step is to select a Subscription Plan and create your personal API key.

If you’re willing to work with Bitcoin webhooks, make sure to choose a PRO plan or higher. NOWNodes offers a variety of paid subscription plans that allow you to make millions of requests per month from 1 Million on a PRO plan to an UNLIMITED number of interactions with the blockchain on a DEDICATED one! 

  1. On your Profile Page navigate to the WEBHOOKS section and press ADD NEW WEBHOOK button. 
  2. Select a Bitcoin webhook, past your server proxy URL Endpoint or a sample Webhooks URL to try from (, and specific Bitcoin addresses that you want to track transaction activities from  
  3. Once all the required information is indicated correctly, press the ADD NEW WEBHOOK button to create a webhook. 
  4. Done! Now you can send testing notifications and start building! 

Now, as the setup process is over, and your webhook is working correctly, you’ll receive real-time notifications each time the balance of chosen Bitcoin addresses changes. Moreover, there’s a way to test a webhook even before choosing Bitcoin addresses. All you need to do is to paste your server URL where you can track webhook notifications before sending it to the end users in a user-friendly form, and press the TEST WEBHOOK button.

What Are Bitcoin Webhooks Made of?

As said, Bitcoin Webhooks provide comprehensive data about the transaction for a given address. It includes exhaustive information about provided addresses, transactions, and specific block data. So, your webhook response will consist of these key components:

Top-Level Information:
  • txs: Indicates the total number of transactions associated with the given Bitcoin address. 
  • balance: The current balance of the Bitcoin address in satoshis (the smallest denomination of the Bitcoin. 1 BTC = 100,000,000 satoshi.
  • address: The Bitcoin address in question.
  • totalSent: The total amount of satoshis sent from this address overall transactions.
  • unconfirmedTxs: The number of transactions involving this address has not yet been confirmed. In this case, there is 1 unconfirmed transaction.
  • unconfirmedBalance: The net change to the balance of the address is due to unconfirmed transactions. If the number is negative. it means that more satoshis are leaving the address than coming in from unconfirmed transactions.
Transaction Details:

Under the transactions array, each object represents a specific transaction involving the address. 

  • txid: The transaction ID is a unique identifier for the transaction.
  • version: The version number of the transaction format.
  • vin and vout: “vin” is an array of inputs for the transaction, and “vout” is an array of outputs. (Each input and output has its own set of attributes)
  • blockHeight: The height of the block that includes the transaction; -1 typically means the transaction is unconfirmed.
  • confirmations: The number of confirmations the transaction has received; 0 for unconfirmed transactions.
  • blockTime: The timestamp for when the block was mined.
  • size and vsize: the size of the transaction in bytes. vsize is the virtual size, considering the SegWit discount.
  • value and valueIn: The total output value and the input value of the transaction in satoshis.
  • fees: The fees paid for the transaction in satoshis.
  • hex: The raw hexadecimal representation of the transaction.

The Bitcoin webhook response provides a comprehensive overview of the address’s recent transactions, allowing applications to update their state based on real-time transaction data. For developers, this information is crucial for tracking transactions, updating balances, or triggering events based on received or spent transactions.

Best Practices for Bitcoin Webhooks Integration

Integrating Bitcoin webhooks into your Web3 application requires careful consideration to ensure reliability, security, and efficiency. Here are some best practices for Bitcoin webhooks integration:

  1. Secure Endpoints: Ensure that your callback URLs are secured with HTTPS to protect the integrity and confidentiality of transmitted data.
  2. Error Handling: Implement robust error handling in your webhook endpoint to manage various failure scenarios gracefully.
  3. Rate Limiting: Be prepared to handle bursts of incoming webhook calls. Implement rate limiting or queuing mechanisms to avoid overloading your server.
  4. Verify Signatures: using NOWNodes as your webhook provider make sure to utilize the provided signing key to ensure the data’s safety, integrity, and authenticity.
  5. Logging and Monitoring: Log incoming webhook events and their outcomes. Set up alerting mechanisms for webhook failures or anomalies, enabling quick response to issues. 
  6. Webhook Provider Updates: Stay informed about any changes or updates from your webhook provider, such as new features, deprecated events, or changes in the payload structure.

If you use NOWNodes as your Bitcoin Webhook provider, make sure to join our Telegram Community and subscribe to our X/Twitter account to be informed about the latest news and updates! 


In summary, Bitcoin webhooks are an indispensable tool for Web3 developers looking to create dynamic, responsive, and efficient dApps within the Bitcoin ecosystem By understanding how to work with webhooks and accessing these services through platforms like NOWNodes, developers can enhance their applications’ functionality and user experience. As the blockchain ecosystem continues to evolve, leveraging technologies like Bitcoin webhooks will be one of the crucial evolving factors.

Let’s unleash the power of real-time blockchain event monitoring with Bitcoin Webhooks #NOW

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