diff --git a/src/api.rs b/src/api.rs
index fe6d023..1149277 100644
--- a/src/api.rs
+++ b/src/api.rs
@@ -6,6 +6,8 @@ use std::ops::Index;
 use std::str::FromStr;
 use std::string::FromUtf8Error;
 use std::sync::{Mutex, MutexGuard, OnceLock, PoisonError};
+use futures_util::StreamExt;
+use sdk_common::updates::{init_update_sink, StateUpdate, WasmUpdateSink};
 use web_time::{Duration, Instant};
 use std::u32;
 
@@ -296,13 +298,90 @@ pub fn create_new_device(birthday: u32, network_str: String) -> ApiResult<String
 
 #[wasm_bindgen]
 pub async fn scan_blocks(tip_height: u32, blindbit_url: String) -> ApiResult<()> {
+    let (sink, mut scan_rx, mut state_rx) = WasmUpdateSink::new();
+        
+    // Initialize the global sink
+    init_update_sink(sink);
+
+    wasm_bindgen_futures::spawn_local(async move {
+        while let Some(progress) = scan_rx.next().await {
+            log::info!(
+                "Scan progress: {}/{} ({}%)", 
+                progress.current, 
+                progress.end,
+                (progress.current * 100) / progress.end
+            );
+        }
+    });
+
+    wasm_bindgen_futures::spawn_local(async move {
+        while let Some(update) = state_rx.next().await {
+            match update {
+                StateUpdate::Update {
+                    blkheight,
+                    blkhash,
+                    found_outputs,
+                    found_inputs,
+                } => {
+                    log::info!(
+                        "Processing update at height {}: {} outputs, {} inputs", 
+                        blkheight, found_outputs.len(), found_inputs.len()
+                    );
+                    
+                    // Actually update the device's wallet state in WASM context
+                    if let Ok(mut local_device) = lock_local_device() {
+                        // Get direct access to the device's outputs to modify them
+                        let device_outputs = local_device.get_mut_outputs();
+                        
+                        // Mark found inputs as spent
+                        for outpoint in found_inputs {
+                            if let Some(output) = device_outputs.get_mut(&outpoint) {
+                                output.spend_status = OutputSpendStatus::Spent(blkhash.to_byte_array());
+                            } else {
+                                // This should never happen, but we'll log it just in case
+                                log::error!("Found a spent input that we don't know about: {}", outpoint.to_string());
+                            }
+                        }
+                        
+                        // Add new found outputs to the device
+                        device_outputs.extend(found_outputs);
+
+                        // update last_scan
+                        local_device.get_mut_sp_wallet().set_last_scan(blkheight.to_consensus_u32());
+                        
+                        log::debug!("Updated device outputs and marked inputs as spent");
+                    } else {
+                        log::error!("Failed to lock local device for state update");
+                    }
+                    
+                    log::debug!("State update processed at height: {}", blkheight);
+                }
+                StateUpdate::NoUpdate { blkheight } => {
+                    log::debug!("No update at height: {}", blkheight);
+                    // We still need to update last_scan
+                    if let Ok(mut local_device) = lock_local_device() {
+                        let sp_wallet = local_device.get_mut_sp_wallet();
+                        sp_wallet.set_last_scan(blkheight.to_consensus_u32());
+                    } else {
+                        log::error!("Failed to lock local device for last_scan update");
+                    }
+                }
+            }
+        }
+    });
+
+    let (sp_client, owned_outpoints, last_scan) = {
     let local_device = lock_local_device()?;
+        let owned_outpoints: HashSet<OutPoint> = local_device.get_sp_wallet().get_unspent_outputs().keys().map(|o| *o).collect();
+        let sp_client = local_device.get_sp_client().clone();
+        let last_scan = local_device.get_sp_wallet().get_last_scan();
 
-    let sp_wallet = local_device.get_sp_wallet();
+        (sp_client, owned_outpoints, last_scan)
+    };
 
-    let last_scan = sp_wallet.get_last_scan();
     let n_blocks_to_scan = tip_height - last_scan;
-    crate::wallet::scan_blocks(n_blocks_to_scan, &blindbit_url, sp_wallet, tip_height, last_scan).await?;
+
+    crate::wallet::scan_blocks(n_blocks_to_scan, &blindbit_url, sp_client, owned_outpoints, tip_height, last_scan, 10).await?;
 
     Ok(())
 }
diff --git a/src/wallet.rs b/src/wallet.rs
index 42e5703..d9c90db 100644
--- a/src/wallet.rs
+++ b/src/wallet.rs
@@ -31,9 +31,15 @@ pub fn generate_sp_wallet(network: Network) -> anyhow::Result<SpClient> {
     )
 }
 
-pub async fn scan_blocks(mut n_blocks_to_scan: u32, blindbit_url: &str, sp_wallet: &SpWallet, tip_height: u32, scan_height: u32) -> anyhow::Result<()> {
-    log::info!("Starting a rescan");
-
+pub async fn scan_blocks(
+    mut n_blocks_to_scan: u32, 
+    blindbit_url: &str, 
+    sp_client: SpClient, 
+    owned_outpoints: HashSet<OutPoint>,
+    tip_height: u32, 
+    scan_height: u32,
+    save_interval: u32,
+) -> anyhow::Result<()> {
     // 0 means scan to tip
     if n_blocks_to_scan == 0 {
         n_blocks_to_scan = tip_height - scan_height;
@@ -53,15 +59,11 @@ pub async fn scan_blocks(mut n_blocks_to_scan: u32, blindbit_url: &str, sp_walle
     let updater = StateUpdater::new();
     let backend = BlindbitBackend::new(blindbit_url.to_string())?;
 
-    let owned_outpoints = sp_wallet.get_unspent_outputs().keys().map(|o| *o).collect();
-
     let keep_scanning = Arc::new(AtomicBool::new(true));
 
-    log::info!("start: {} end: {}", start, end);
     let start_time = Instant::now();
-    log::info!("{:?}", start_time);
     let mut scanner = WasmSpScanner::new(
-        sp_wallet.get_sp_client().clone(),
+        sp_client,
         Box::new(updater),
         Box::new(backend),
         owned_outpoints,
@@ -78,11 +80,5 @@ pub async fn scan_blocks(mut n_blocks_to_scan: u32, blindbit_url: &str, sp_walle
         )
         .await?;
 
-    // time elapsed for the scan
-    log::info!(
-        "Scan complete in {} seconds",
-        start_time.elapsed().as_secs()
-    );
-
     Ok(())
 }