elraphty / BitcoinBankV2

A Bitcoin bank that can process Bitcoin transactions and Lightning payments

Bitcoin bankV2

A Bitcoin bank project built with Bitcoin, Lightning (LND) and Typescript

Requirements

• Nodejs version 14.19.0 minimum
• A running Bitcoin Core node on Signet or Testnet network
• A running Lightning node (LND)
• PostgresDB installed

How It Works

• This project works with 2 bitcoin wallets: a cold and hotwallet, ideally the cold wallet is supposed to be a coldstorage but for the purpose of this project we will use 2 Bitcoin core wallets. When you run the project npm run dev it checks for the number of wallets on your node if none it creates 2 wallets named coldwallet, and hotwallet, if one wallet is available it creates one wallet named hotwallet. You can set the wallet names in the .env HOTWALLETNAME= COLDWALLETNAME= file if you have wallets already on your node and they are not named coldwallet and hotwallet.

• Every 1 hour a check is done to make sure the hotwallet has 20% of the total funds while the rest of the 80% is in the cold wallet, if the hotwallet has more than 20% the amount of the percentage excess will be transferred to the cold wallet, also if the coldwallet has 80% the amount of the percentage that exceeds 80% will be transferred to the hotwallet

• When u create a user using the api/v1/user/register endpoint it creates a new segwit user to the database table

• Outbound transactions uses Bitcoin's JSON RPC sendtoaddress command to create and broadcast a transaction

• Inbound Transactions are checked every 10 mins (Bitcoin's block time) after the confirmation meets the confirmation count specified in the .env it updates the user's balance and create a new address for them

• User's can create a Lightning BOLT 11 invoice, if payemnt is made to the invoice and settled the amount of satoshis paid will be added to their balance

• User's can also pay a Lighning BOLT 11 invoice, if the payment is successful the amount will be deducted from their balances

How to Run

• Clone the project git clone https://github.com/elraphty/BitcoinBank.git

Server

• cd server
• Run npm install
• Install knex globally npm install knex -g
• Start your Bitcoin Core node by running bitcoind in your termainal
• Confirm if your node is running using bitcoin-cli -getinfo command
• Start your LND node by running lnd in your termainal
• Confirm if your LND node is running using lncli getinfo command
• Create a .env file copy the variables in .env_sample file paste them in ur newly created .env file and update the values
• Migrate Database schemas by running knex migrate:latest
• Run npm run start in the project folder

Client

 cd client
 yarn install
 yarn dev

API ROUTES

• GET /api/v1 = Base route
• POST /api/v1/user/register = Register a user, create a Segwit bech32 address for the user, and create a user default balance of 0 bitcoin
• POST /api/v1/user/login = User login
• GET /api/v1/user/address = Get user bitcoin segwit address for inbound transactions
• GET /api/v1/user/balance = Get user bitcoin balance
• POST /api/v1/wallet/createtransaction = Create an outbound transaction, and update the user's balance
• GET /api/v1/wallet/transactions = Get user transactions
• POST /api/v1/lightning/invoice = Create inbound Lightning BOLT 11 invoice
• GET /api/v1/lightning/payments = List user's Ligthning payments
• POST /api/v1/lightning/lookup = Lookup Lightning invoice
• POST /api/v1/lightning/pay = Pay outbound Lightning invoice