Bitcoin

This guide will walk you through the process of setting up a Bitcoin regtest network and Fulcrum Electrum server.

the library bitcoin-core.js uses local bitcoin and electrum node for testing.

Table of Contents

1. Prerequisites

2. Setting up Bitcoin Core in Regtest Mode

3. Configuring Bitcoin Core

4. Starting Bitcoin Core in Regtest Mode

5. Generating Initial Blocks

6. Setting up Fulcrum

7. Configuring Fulcrum

8. Starting Fulcrum

9. Testing the Setup

Prerequisites

• Bitcoin Core

• Fulcrum (latest version)

• Basic knowledge of command-line operations

Setting up Bitcoin Core in Regtest Mode

Learn about (Bitcoin Regtest)[https://developer.bitcoin.org/examples/testing.html]

1. Download and install Bitcoin Core from the official website: https://bitcoincore.org/en/download/

2. Create a directory for your regtest data:

mkdir ~/bitcoin-regtest

Configuring Bitcoin Core

Create a configuration file for Bitcoin Core:

vim ~/.bitcoin/bitcoin.conf

Add the following lines to the configuration file:

server=1
rpcuser=user
rpcpassword=password
regtest=1
zmqpubrawblock=tcp://0.0.0.0:28334
zmqpubrawtx=tcp://0.0.0.0:28335
zmqpubhashblock=tcp://0.0.0.0:28336
datadir=./bitcoin-regtest
txindex=1
dnsseed=0
upnp=0
[regtest]
rpcbind=0.0.0.0
rpcallowip=0.0.0.0/0
rpcport=18443
listenonion=0
fallbackfee=0.0003
connect=localhost

Save and close the file.

Starting Bitcoin Core in Regtest Mode

Start Bitcoin Core in regtest mode:

bitcoind --regtest -conf=<path to config file>

Create new wallet

Create a new internal regtest wallet

bitcoin-cli -regtest createwallet main

Using bitcoin-cli

These are some common commands for the cli:

# Get new address 
bitcoin-cli -regtest getnewaddress

# Mine some bitcoin blocks
bitcoin-cli -regtest generatetoaddress 1 <bitcoin address>

### send some bitcoin
bitcoin-cli -regtest sendtoaddress 1.1 <bitcoin address>

Setting up Fulcrum

1. Download and compile Fulcrum from the official repository: https://github.com/cculianu/Fulcrum

2. Follow the compilation instructions in the Fulcrum README.

Configuring Fulcrum

Create a configuration file for Fulcrum:

vim ~/fulcrum.conf

Add the following lines to the configuration file:

datadir = /path/to/fulcrum/data
bitcoind = 127.0.0.1:18443
rpcuser = your_rpc_username
rpcpassword = your_rpc_password
tcp = 127.0.0.1:50001

Adjust the paths and credentials as needed.

Starting Fulcrum

Start Fulcrum:

./Fulcrum ~/fulcrum.conf

Testing the Setup

1. Ensure Bitcoin Core is running in regtest mode.

2. Ensure Fulcrum is running and connected to your Bitcoin Core regtest node.

3. Use a compatible wallet (e.g., Electrum) to connect to your Fulcrum server (usually at 127.0.0.1:50001).

You should now have a working Bitcoin regtest network with Fulcrum as Electrum server.

Remember to stop both Bitcoin Core and Fulcrum when you're done testing:

bitcoin-cli -regtest stop
./Fulcrum --stop

This setup allows you to experiment with Bitcoin transactions and smart contracts in a controlled environment without using real Bitcoin or connecting to the main network.