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creating a wallet
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Shannon Appelcline
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@ -6,7 +6,9 @@ One of the greatest powers of PSBTs is the ability to hand transactions off to h
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So, you have three options for moving through this chapter on hardware wallets: (1) read along without testing the code; (2) install Bitcoin on a local machine to fully test these commands; or (3) skip straight ahead to [Chapter 8: Expanding Bitcoin Transactions in Other Ways](08_0_Expanding_Bitcoin_Transactions_Other.md). We suggest option #1, but if you really want to test these commands out we'll also give some support for #2 by talking about using a Macintosh for testing (a hardware-platform supported by [Bitcoin Standup](https://github.com/BlockchainCommons/Bitcoin-Standup)).
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> :warning: **VERSION WARNING:** This is an innovation from Bitcoin Core v 0.17.0. Earlier versions of Bitcoin Core will not be able to work with the PSBT while it is in process (though they will still be able to recognize the final transaction).
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> :warning: **VERSION WARNING:** PSBTs are an innovation from Bitcoin Core v 0.17.0. Earlier versions of Bitcoin Core will not be able to work with the PSBT while it is in process (though they will still be able to recognize the final transaction).
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> :warning **FRESHNESS WARNING:** The HWI interface is very new. It may be hard to install correctly and it may have unintuive errors. What follows if a description of a working setup, but it took several tries to get right, and your setup may vary.
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The methodology for integrating with a Hardware Wallet that is described in this chapter depends on the [Bitcoin Hardware Wallet Interface](https://github.com/bitcoin-core/HWI) released through Bitcoin Core and builds on the [installation](https://github.com/bitcoin-core/HWI/blob/master/README.md) and [usage](https://github.com/bitcoin-core/HWI/blob/master/docs/bitcoin-core-usage.md) instructions found there.
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@ -20,23 +22,27 @@ If you have MacOS, you can install [Bitcoin Standup MacOS](https://github.com/Bl
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If you have a local UNIX machine, you can install [Bitcoin Standup Linux Scripts](https://github.com/BlockchainCommons/Bitcoin-Standup-MacOS/blob/master/README.md).
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We will be using a Macintosh for the examples in this section.
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Once you've gotten Bitcoin Standup running on your local machine, you'll want to sync the "Testnet" blockchain, assuming that you're continuing to follow the standard methodlogy of this course.
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### Create an Alias for Bitcoin-CLI
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We will be using a Macintosh and Testnet for the examples in this section.
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### Creating an Alias for Bitcoin-CLI
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Create an alias that causes `bitcoin-cli` to run the correct command from the correct directory with any appropriate flags.
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Here's an example alias from a Mac:
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```
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Mac$ $ alias bitcoin-cli="~/StandUp/BitcoinCore/bitcoin-0.20.0/bin/bitcoin-cli -testnet"
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$ alias bitcoin-cli="~/StandUp/BitcoinCore/bitcoin-0.20.0/bin/bitcoin-cli -testnet"
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```
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## Install HWI on a Local Machine
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You'll note it not only gives us the full path, but also ensures that we stay on Testnet.
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## Installing HWI on a Local Machine
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_The following instructions again assume a Mac._
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HWI is a Bitcoin Core program available in python.
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### Install Python
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### Installing Python
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Because HWI program is written in `python`, you'll need to install that first, if you haven't already.
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@ -62,8 +68,7 @@ $ brew install python
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$ brew install libusb
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```
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### Install HWI
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### Installing HWI
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You're now ready to install HWI, which requires cloning a GitHub repo and compiling.
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@ -80,6 +85,14 @@ $ cd HWI
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HWI$ python3 setup.py install
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```
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### Creating an Alias for HWI
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You'll want to create an alias here too, varied by yhour actual install location:
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```
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$ alias hwi="~/Standup/HWI/hwi.py --testnet"
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```
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Again, we've included a reference to testnet in this alias.
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## Prepare Your Ledger
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_We had to choose a hardware-wallet platform too, for this HWI demonstration. Our choice was Ledger, which has long been our testbed for hardware wallets. Please see [HWI's device support info](https://github.com/bitcoin-core/HWI/blob/master/README.md#device-support) for a list of other supported devices. If you use a device other than a Ledger, you'll need to assess your own solutions for preparing it for usage on the Testnet, but otherwise you should be able to continue with the course as written._
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@ -98,15 +111,67 @@ To fully test, you will also want to request some Testnet coins from a faucet as
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In order for a Ledger to be accessible, you must login with your PIN and then call up the app that you want to use, in this case the "Bitcoin Test" app. Once you've done that, you can ask for HWI to access the Ledger:
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```
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HWI$ ./hwi.py enumerate
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$ hwi enumerate
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[{"type": "ledger", "model": "ledger_nano_s", "path": "IOService:/AppleACPIPlatformExpert/PCI0@0/AppleACPIPCI/XHC1@14/XHC1@14000000/HS05@14100000/Nano S@14100000/Nano S@0/IOUSBHostHIDDevice@14100000,0", "fingerprint": "9a1d520b", "needs_pin_sent": false, "needs_passphrase_sent": false}]
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```
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If you got information on your device, you're set!
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If you got information on your device, you're set! As you can see, it verifies your hardware-wallet type, provides other identifying information, and tells you how you must communicate with the device.
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If you instead got `[]`, then either (1) you didn't get your Ledger device ready by entering your PIN and choosing the correct application, or (2) there's something wrong with your Python setup, probably a missing dependency: you should consider `uninstall`ing it and trying from scratch.
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## Import Addresses
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Interacting with a hardware wallet usually comes in two major steps: watching for funds and spending funds.
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You can watch funds by importing addresses from your hardware wallet to your full node, using `bitcoin-cli`.
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### Creating a Wallet
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To use your hardware wallet with `bitcoin-cli`, you'll want to create a specific named wallet, using the `createwallet` RPC, which is a new command.
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```
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$ bitcoin-cli --named createwallet wallet_name="ledger" disable_private_keys="true"
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{
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"name": "ledger",
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"warning": ""
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}
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```
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In this case, we are creating a new wallet `ledger` without private keys (since those will be over on the Ledger device).
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> :book: ***Why Name Wallets?*** To date, this course has used the default ("") wallet in Bitcoin Core. This is fine for many purposes, but is inadequate if you have a more complex situation, such as when you're watching keys from a hardware wallet. Here, we want to be able to differentiate from the locally owned keys (which are kept in the "" wallet) and the remotely owned keys (which are kept in the "ledger" wallet).
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You can now see that the new wallet is in your list:
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```
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$ bitcoin-cli listwallets
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[
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"",
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"ledger"
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]
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```
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Because you've created a second wallet, some commands will now require a `-rpcwallet=` flag, to specify which wallet you're using
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### Importing the Keys
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$ hwi -f 9a1d520b getkeypool --wpkh 0 1000
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[{"desc": "wpkh([9a1d520b/84h/1h/0h]tpubDD7KTtoGzK9GuWUQcr1uTJazsAkqoXhdrwGXWVix6nPpNZmSbagZWD4QSaMsyK8YohAirGDPrWdRiEpKzTFB7DrTrqfzHCn7yi5EsqeR93S/0/*)#qttxy592", "range": [0, 1000], "timestamp": "now", "internal": false, "keypool": true, "active": true, "watchonly": true}, {"desc": "wpkh([9a1d520b/84h/1h/0h]tpubDD7KTtoGzK9GuWUQcr1uTJazsAkqoXhdrwGXWVix6nPpNZmSbagZWD4QSaMsyK8YohAirGDPrWdRiEpKzTFB7DrTrqfzHCn7yi5EsqeR93S/1/*)#3lw8ep4j", "range": [0, 1000], "timestamp": "now", "internal": true, "keypool": true, "active": true, "watchonly": true}]
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$ bitcoin-cli getdescriptorinfo "wpkh([9a1d520b/84h/1h/0h]tpubDD7KTtoGzK9GuWUQcr1uTJazsAkqoXhdrwGXWVix6nPpNZmSbagZWD4QSaMsyK8YohAirGDPrWdRiEpKzTFB7DrTrqfzHCn7yi5EsqeR93S/0/*)#qttxy592"
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{
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"descriptor": "wpkh([9a1d520b/84'/1'/0']tpubDD7KTtoGzK9GuWUQcr1uTJazsAkqoXhdrwGXWVix6nPpNZmSbagZWD4QSaMsyK8YohAirGDPrWdRiEpKzTFB7DrTrqfzHCn7yi5EsqeR93S/0/*)#n65e7wjf",
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"checksum": "qttxy592",
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"isrange": true,
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"issolvable": true,
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"hasprivatekeys": false
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}
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$ bitcoin-cli -rpcwallet=ledger importmulti '[{"desc": "wpkh([9a1d520b/84h/1h/0h]tpubDD7KTtoGzK9GuWUQcr1uTJazsAkqoXhdrwGXWVix6nPpNZmSbagZWD4QSaMsyK8YohAirGDPrWdRiEpKzTFB7DrTrqfzHCn7yi5EsqeR93S/0/*)#qttxy592", "range": [0, 1000], "timestamp": "now", "internal": false, "keypool": true, "active": true, "watchonly": true}, {"desc": "wpkh([9a1d520b/84h/1h/0h]tpubDD7KTtoGzK9GuWUQcr1uTJazsAkqoXhdrwGXWVix6nPpNZmSbagZWD4QSaMsyK8YohAirGDPrWdRiEpKzTFB7DrTrqfzHCn7yi5EsqeR93S/1/*)#3lw8ep4j", "range": [0, 1000], "timestamp": "now", "internal": true, "keypool": true, "active": true, "watchonly": true}]'
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[
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{
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"success": true
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},
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{
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"success": true
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}
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]
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## Create a Transaction with PSBT
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## Summary: Integrating with Hardware Wallets
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