Cryptio has built proprietary indexers for the Solana ecosystem, allowing Solana-based businesses and projects to complete accounting, financial reporting, and audit preparation to the high standard required by auditors and regulators.

Solana is one of the leading L1s with many Web3 businesses and projects choosing to build on the network due to its high transaction throughput and scalability at low cost. The recent news that Visa has chosen Solana to enhance its USDC stablecoin settlement pilot will likely only increase its popularity. However, until now, accounting and reporting for Solana-based transactions has been a challenge for enterprises and businesses.

The problem with retrieving accurate and auditable on-chain data

Accountants, bookkeepers and auditors often use block explorers like Solscan to track on-chain transactions. This results in a huge number of missing transactions including internal transfers and rent fees, as public data is not a reliable source of truth for accounting and tax purposes. The completeness and accuracy of such block explorers can vary greatly, as they were not built for enterprise-grade accounting, which is unacceptable in accounting and financial reporting.

To combat this issue for the Solana ecosystem, Cryptio has indexed the chain fully to enable Solana-based businesses and projects to easily access accurate and complete transaction data.

With a powerful in-app reporting suite and audit preparation features, businesses building in the Solana ecosystem can rely on Cryptio for their accounting, audit and tax needs.

Accurate and auditable transaction histories for Solana

Cryptio’s integration with Solana is unique in the industry. We are the only back-office solution that has fully indexed the Solana blockchain. This means businesses and projects with financial activity on the Solana network finally have access to accurate and complete transaction histories.

Accountants, bookkeepers and auditors using Cryptio to reconcile transactions on the Solana network benefit from the following:

• Track on-chain activity on Solana blockchain (and 40+ chains like Bitcoin, Ethereum, and Polygon).
• Streamline revenue and expense reporting.
• Automate cost basis and G&L computations.
• Complete GAAP- and IRFS-compliant reporting for accounting, audit, and tax.
• Ensure data completeness and accuracy with balance and price discrepancy checks.
• Guarantee wallets have been imported correctly with our wallet completeness checks.
• Ensure audit readiness with features like our automatic counterparty identification.
• Run impairment testing and apply impairments for assets on Solana blockchain.

However, indexing the Solana chain was not easy and totally different to EVM chains, let’s explore how Cryptio overcame this challenge.

How Cryptio solved accounting for transactions on the Solana network

Unlike other accounting and reporting software, Cryptio does not use block explorers or third-party data indexing companies to retrieve on-chain transaction data. Using either of these options often results in incomplete and inaccurate transaction histories (read our Counting Crypto series for more information).

The key to getting complete and accurate transaction histories is indexing. However, indexing the chain is fraught with difficulties - meaning that other accounting solutions have not successfully indexed the chain. Cryptio is the only back-office solution that has independently indexed Solana.

There are 4 key challenges to indexing the Solana blockchain:

1. Lengthy study of the blockchain required: Formatting of block information on Solana differs a lot from other chains, especially EVM chains. This means we had to study how Solana transactions were recorded and represented at the block level to understand which information was needed for accounting and reporting purposes.
2. Collection of correct financial data: Solana’s unique blockchain structure means that it is difficult to collect the correct financial data and distinguish it from irrelevant information. We had to build a custom data retrieval method that extracts only relevant accounting information.
3. Complete transaction histories: on Solana, you cannot see complete transaction histories for all the addresses associated with a master address. This meant that Cryptio had to build proprietary logic to collect complete transaction histories for all the addresses.
4. Hardware and data storage: Cryptio had to index 215 million blocks and 215 billion transactions, requiring huge amounts of data storage. This means we have had to invest in extensive hardware to store the data our clients need.

Indexing is the key to getting accurate and auditable on-chain data

Cryptio has purpose-built indexers for Solana and is the only independent source for transactions on the chain. Our approach to getting accurate and auditable data can be broken down into 4 steps:

1. Retrieval of raw blockchain data: we run nodes on our integrated chains, which now include Solana, to retrieve complete transaction histories.
2. Filtering of relevant information: our purpose-built indexers filter all the raw on-chain data for the relevant accounting and financial reporting information.
3. Transfer of relevant information to our platform: where our users can generate reports for accounting, tax, and audit preparation.
4. Integrations with ERP accounting systems: our users can push all transactions to their general ledger (NetSuite, Sage, Xero, QuickBooks Online) to give them one ledger of truth.

Cryptio’s platform capabilities and Audit Readiness Module provide the accuracy, completeness, and auditability required by accountants, bookkeepers, and auditors to perform their job effectively.

Providing robust infrastructure for the future of Web3

Solana provides the infrastructure for Web3 businesses and projects looking for a hyper-fast decentralized network. By building the missing financial data infrastructure, Cryptio enables these businesses and projects to complete their accounting and financial reporting to an auditable standard.

“Solana is a very popular chain for businesses however the infrastructure for accounting and financial reporting has - up until now - not been good enough. Cryptio’s purpose-built indexers ensure that all businesses and institutions operating on Solana can automatically import accurate and complete transaction histories for their accounting and financial reporting.”

Lucas Santoni, Chief Technology Officer at Cryptio

Revolutionize your Solana financial reporting with Cryptio

Cryptio has dedicated extensive time and resources to building our indexers for Solana. However, we are committed to enabling enterprises and institutions to complete accounting and financial reporting to an auditable standard for the entire crypto industry.

Need an accounting and reporting solution for Solana? Book a demo with us.