Running a wallet with an external node

Hey everyone. We’ve been using bitcoind to handle our own node and wallet. Now, we're looking to set up the wallet on a separate server and connect it to a third-party API, so we can skip running a full node. Is there a way to have a wallet that connects to an external node? Thanks a lot!

Yes, wallets like Electrum, Sparrow wallet, Bluewallet, and others do connect to a different running node. If you are not using a personal node for your wallet, then what is running is an external node by default, or you can pick which to connect to.

Further to the answer above, the best option is to install an Electrum server like Electrus or Fullcrum. This will allow you to connect to any wallet that allows you to connect to the Bitcoin network remotely through an Electrum server. There are several guides out there, like this one: https://theroadtonode.com/bitcoin-core-extensions/electrs Now, if you want to connect to the default servers of these lightweight wallets, you don't need to install a personal server, they will connect by default (or ask the user if they want to connect to a private server). In this case, I recommend connecting to servers via Tor. Note: Connecting to third-party servers is bad for your privacy.

if you want to do without using a full bitcoin core node, yes, you can, as mentioned in previous comments, but I don't think you can continue using bitcoind for them or at least I haven't seen bitcoind used this way in their documentation, unless you choose the option of a pruned node in which you could continue using bitcoind, but that in the long run could cause you problems due to limited access to the blockchain, it is also worth mentioning that if you want to keep the same wallet, you should consider exporting it to a version compatible with the one you are going to use, either through descriptors, privatekeys or simply migrating your funds to a compatible wallet, since electrum, for example, does not follow the same derivation logic as bitcoin core. You should also reconsider whether abandoning Bitcoin Core as a full node would be a good idea and worth it, as well as migrating to other types of systems that you are unfamiliar with.

Thank you guys for the information. So yes we already use bitcoind as a wallet so we can send btc(by calling rpc) and receive "walletnotify" messages. And idea was keep using it as it is but do not have full synced node... So I can see from your answers it is not possible. Thanks!

Yes, it's impossible to achieve what you want with Bitcoin Core. There's no option to let you request specific data on other node/server. Pruned node only reduce storage space requirement, but other requirement remains same. Other user have mentioned to use different wallet, but i expect it's not applicable to you since, 1. You need to move Bitcoin and rewrite some of your software. 2. Some of mentioned software have GUI and there's no way to run it on server without the GUI.

1 and 2 - yes correct, it will be difficult for now to migrate to another architecture. Thank you all, and have a good day!

If you use a third party API to run your wallet then the third party can rob you blind. What other requirements are you concerned about?    If you cut down connections bandwidth and memory are also reduced.

I have no specific concern regarding OP's case. My statement assume there's no other change besides enabling pruning.