Bitcoin CoinJoin implementation with incentive structure to convince people to take part
View the Project on GitHub JoinMarket-Org/joinmarket-clientserver
b. Slightly longer description
c. Proof of work for anti-spam
d. Servers
For the time constraints, consider these points:
For formal specs as currently implemented, please use this. Less technical description here.
Essentially, this is a two party but non-interactive protocol. The proposer will identify, on the blockchain, a candidate transaction where he has some confidence that one or more inputs are owned by the same party as one output, and that that party has SNICKER receiver functionality.
Given those conditions, he’ll create one or more proposals which are of form base64-encoded-ECIES-encrypted-PSBT,hex-encoded-pubkey (the separator is literally a comma; this is ASCII encoded), and send them to a snicker-server which is hosted at an onion address (possibly TLS but let’s stick with onion for now, it’s easier). They could also be sent manually. We’ll talk more about these two possibilities below.
To understand the step-by-step of how this is done “under the hood”, you may find the section on testing a useful read. If you’re only interested in “switching on this feature”, notice this is not advised on mainnet (see the section on alternatives to mainnet), but read more below about editing the config and switching it on in a yieldgenerator.
As implemented here, in fact, the proposer attaches a proof of work in the form of a 10-byte nonce appended to the end of the above string (hex encoded; so in fact: base64-encoded-ECIES-encrypted-PSBT,hex-encoded-pubkey,hex-encoded-nonce is what is sent over the wire). This nonce is grinded to get a 32-byte-truncated-hash512 of that string to be less than a target calculated by a request number of bits from the server. The target bits is requested by the proposer with a GET /target request to the server, before sending the proposals themselves with a POST / request with the proposals in the body. For the proof of work, see jmbase/jmbase/proof_of_work.py; it’s pretty elementary. Note of course this is no defence against a serious attempt to jam the system, it’s only a “script-kiddie-defence”, so to speak.
The snicker-server just hosts the proposals and lets others read them. For the purpose of testing it’s fine that we don’t have a very sophisticated version of this, but for now note:
-n option of create-snicker-proposal.py to just output to terminal instead of uploading to server; this may be in particular more useful for local tests where it’s only your own wallets involved.proposals.db. The table is proposals and has only two fields: pubkey and proposal (see above).The new tools for SNICKER are in the directory scripts/snicker, consisting of:
snicker-seed-tx.py - create a fake SNICKER transaction in your own wallet.snicker-finder.py - scan recent blocks for Joinmarket or SNICKER candidate transactions.create-snicker-proposal.py - takes transactions found from the above and makes proposals, uploading them to a server or outputting to command line.snicker-server.py - implements a simple server serving over *.onion, with a sqlite database to store proposals, and defends against spam only mildly with a proof of work requirement (see below).receive-snicker.py - polls above server to read new proposals, parse them and broadcasts completed SNICKER coinjoins when found, storing the new keys as imports (see details on wallet handling below).snicker-recovery.py - can be used to recover a wallet from seedphrase which contains SNICKER utxos, though it needs (possibly multiple) rescanblockchain calls (and informs the user how to do this, including blockheights).Recreate your joinmarket.cfg in the usual way. You can then edit the new [SNICKER] section as desired:
[SNICKER]
# any other value than 'true' will be treated as False,
# and no SNICKER actions will be enabled in that case:
enabled = false
# in satoshis, we require any SNICKER to pay us at least
# this much (can be negative), otherwise we will refuse
# to sign it:
lowest_net_gain = 0
# comma separated list of servers (if port is omitted as :port, it
# is assumed to be 80) which we will poll against (all, in sequence); note
# that they are allowed to be *.onion or cleartext servers, and no
# scheme (http(s) etc) needs to be added to the start.
servers = cn5lfwvrswicuxn3gjsxoved6l2gu5hdvwy5l3ev7kg6j7lbji2k7hqd.onion,
# how many minutes between each polling event to each server above:
polling_interval_minutes = 60
Notice that it is of course NOT enabled by default, so switch that to true.
If you are running tests, a 60 minute polling interval is slow, feel free to cut it down to a minute or two.
The default server is currently running on a VPS. As mentioned above, you can easily run your own server with snicker-server.py. It is possible to poll multiple servers, comma separated in the list.
Choosing the network for this function means editing the [BLOCKCHAIN] section in joinmarket.cfg, just as for other Joinmarket functionality.
Regtest is a good option if you are interested in testing functionality quickly, on your own. See here for some info on regtest setup.
Signet (a new testnet) will be helpful especially if you intend to test with others. This can be done by simply sharing proposals as per the -n comments above, or by sharing proposal server locations as onion addresses, and possibly communicating with other testers to identify candidate transactions (obviously this strays far from the intended way SNICKER will be used, but it is convenient to test workflow).
For more information about using Joinmarket with signet, see the 0.8.1 release notes and this gist.
Testnet3 - it may be possible but it will be far less convenient than signet.
Mainnet - as of Feb 2021, this isn’t recommended yet; it should in theory work no different, but any usage would be at your own risk.
The receiver (unless handling manually with -n as per above) polls this server (for testing, you can make the polling loop fast; in real usage it should be slow), reads all the existing proposals using a GET / request with no parameters, and if it can decrypt and sanity check the transaction OK, it co-signs it and broadcasts it. Note: the receiver wallet will store its new coins output from the coinjoin, as imported keys; they are not part of the HD tree, although derivable from history. See use of wallets below for important notes on this aspect.
For this you can use the receive-snicker.py script as detailed above, passing the chosen wallet file as argument, and it will “one-shot” poll for proposals and process them, or, you can pass the base64 proposal manually instead.
This will presumably be the most normal way to be a SNICKER receiver over time; if enabled=true for SNICKER is in the above config settings, this will happen automatically, under the hood. Make sure the polling loop interval is not too fast if you leave this running longer term (even if a test bot). If valid proposals are found that follow our requirements, the transactions are broadcast.
Wallet type - please stick with native segwit (native=true in config before you generate), but you can also choose p2sh-p2wpkh, it should work. No other script type (including p2pkh) will work here. We don’t want mixed script type SNICKER coinjoins.
Persistence in the wallet - this is very important and not at all obvious! But, on regtest and testnet by default, we use hex seeds instead of wallet files and VolatileStorage (wallet storage in memory; wiped on shutdown). This is fine and convenient for many tests, but will not work for a key part of SNICKER - imported keys.
The upshot - make sure you actually generate wallet files for all wallets you’re going to test SNICKER with, otherwise you will not even see the created coins on the receiver side.
Additionally, when you view the wallet with wallet-tool, you need to use --recoversync, as the default fast sync won’t see imported keys. If you took these two steps, your tests should correctly show the post-SNICKER created coins.
SNICKER is logged to:
~/.joinmarket/logs/SNICKER/SNICKER-joinmarket-wallet-xxxxxx.log
i.e. there is one SNICKER log file for each wallet. This should show all transactions that were detected and broadcast.
This is a scenario for a single user, using either regtest or signet.
Generate a minimum of two joinmarket wallets with python wallet-tool.py generate, as noted above, native (or at least, both the same type).
Fund them both. The receiver needs at least two utxos to create the seed transaction.
Create a seed fake-SNICKER transaction in the receiver wallet, using the script snicker-seed-tx.py.
Start the test server. Navigate to scripts/snicker and run python snicker-server.py - no arguments should be needed, and this will generate an onion running serving on port 80; the onion hostname is displayed:
(jmvenv) waxwing@here~/testjminstall/joinmarket-clientserver/scripts/snicker$ python snicker-server.py
User data location:
Attempting to start onion service on port: 80 ...
Your hidden service is available:
xpkqk2cy2h2ay5iecwcod5ka36nxj2tsiyczk2w5c6o7h5g57w3xg4id.onion
This is ephemeral, obviously we intend the real servers to be long-running. The one in the default config should exist and be long-running already, but of course your tests don’t need to rely on this. Add:
[SNICKER]
enabled = true
servers= xpkqk2cy2h2ay5iecwcod5ka36nxj2tsiyczk2w5c6o7h5g57w3xg4id.onion,
… to a joinmarket.cfg that you add inside scripts/snicker, by copying it from scripts/ or wherever you keep your testing joinmarket.cfg file. (This manual annoyance is part of testing, it won’t be needed in mainnet usage of course … alternatively just put a signet/regtest custom joinmarket.cfg in your .joinmarket folder, but this is hardly less annoying).
servers= requires a comma separated list.
You’re now ready to do the two steps: (a) create a proposal and upload it, (b) download proposals (as the receiver identity/wallet) and complete coinjoins. It could be different people doing (a) and (b) of course but here we’re assuming one tester doing everything (see two wallets above).
Having done the above seed transaction, do a scan operation to find the candidate:
cd script/snicker; python snicker-finder.py --datadir=. 330
Here, 330 is the starting block number on my regtest blockchain; the ending block is the current block. On signet use a block explorer to find current height (or bitcoin-cli getblockchaininfo). It will look for all transactions with a SNICKER pattern and you should see returned something like this:
2020-12-28 16:09:04,329 [INFO] Finished processing block: 790
2020-12-28 16:09:04,334 [INFO] Found SNICKER transaction: 32f80807b3ba4ca477b25e8ab608a8a3134a34c8c3787cad95c653d1805d7533 in block: 791
2020-12-28 16:09:04,338 [INFO] Finished processing block: 791
2020-12-28 16:09:04,340 [INFO] Finished processing block: 792
done
Then look in ./candidates.txt to find the details of the identified transaction, including its full hex, which you need to copy:
2020-12-16 11:13:01,708 [INFO] {
"hex": "0200000000010138e8a90b3df7740b9d5f5ae9af2cf6769f314d290b2e12bf25bfa4aae2c0cbe20000000000feffffff0280ba8c010000000016001471b09afbac6204627225c10f3a8d4a0749364fdb6d7c36220000000016001447ae59f32c504cbb56e18b77f7842fb58b55025b02473044022075354351ad4c619ba662f9abd25e8ee434f8381795001606a29fa959d36aeb7f022018f8bf1ec0407dad586baeb7e4d977aaacbd8fb15579293e6d739ad69ac3c6cf012103f8e827464fb83209c194376c53ae8f4e7ab5f1baf0948705fec6dd421f2b65c37a020000",
"inputs": [
.................
Full transaction hex for creating a proposal is found in the above.
The unspent indices are: 0 1 2
Copy that fully signed transaction hex, and note the unspent outputs. You’re going to assume (in this case correctly of course) that all of the inputs are valid options for the SNICKER public key (why? because it was a seed transaction, it was a fake SNICKER, and so all the inputs belonged to the same wallet).
At this point you’re ready to run the proposal creator:
python create-encrypted-proposal.py --datadir=. proposerwallet.jmdat "0200000000010138e8a90b3df7740b9d5f5ae9af2cf6769f314d290b2e12bf25bfa4aae2c0cbe20000000000feffffff0280ba8c010000000016001471b09afbac6204627225c10f3a8d4a0749364fdb6d7c36220000000016001447ae59f32c504cbb56e18b77f7842fb58b55025b02473044022075354351ad4c619ba662f9abd25e8ee434f8381795001606a29fa959d36aeb7f022018f8bf1ec0407dad586baeb7e4d977aaacbd8fb15579293e6d739ad69ac3c6cf012103f8e827464fb83209c194376c53ae8f4e7ab5f1baf0948705fec6dd421f2b65c37a020000" 0 1 100 -m1 -n
Obviously see the --help for details, but in this example we chose:
-n option can be used to output the proposal to stdout (it is base64+hex so copy-pasteable).If you choose not to use -n, but instead use a proposals server as above, then assuming it connects to the server OK, you will see:
Response from server: http://xpkqk2cy2h2ay5iecwcod5ka36nxj2tsiyczk2w5c6o7h5g57w3xg4id.onion was: 1 proposals-accepted
The last phase is pretty simple, if it works - just run the receiver script (from scripts/snicker) as follows:
python receive-snicker.py --datadir=. receiver.jmdat [proposal]
User data location: .
2020-12-16 11:43:03,779 [DEBUG] rpc: getblockchaininfo []
2020-12-16 11:43:03,781 [DEBUG] rpc: getnewaddress []
Enter passphrase to decrypt wallet:
2020-12-16 11:43:07,501 [DEBUG] rpc: listaddressgroupings []
2020-12-16 11:43:07,562 [DEBUG] Fast sync in progress. Got this many used addresses: 3
2020-12-16 11:43:08,075 [DEBUG] rpc: listunspent [0]
2020-12-16 11:43:08,216 [DEBUG] bitcoind sync_unspent took 0.14214825630187988sec
2020-12-16 11:43:08,280 [WARNING] Cannot listen on port 27183, trying next port
2020-12-16 11:43:08,281 [WARNING] Cannot listen on port 27184, trying next port
2020-12-16 11:43:08,281 [WARNING] Cannot listen on port 27185, trying next port
2020-12-16 11:43:08,281 [INFO] Listening on port 27186
2020-12-16 11:43:08,282 [INFO] (SNICKER) Listening on port 26186
2020-12-16 11:43:08,282 [INFO] Starting transaction monitor in walletservice
2020-12-16 11:43:08,339 [INFO] Starting SNICKER polling loop
2020-12-16 11:43:22,676 [DEBUG] rpc: sendrawtransaction ['020000000001028ffa6a6f0184ed8123993273ecbb4af82d1b1c0963c815fec4e92525eaba56b30000000000ffffffffa5015509e0e241ef25ee7ccc1936295c908e572cb222105e16c197d66f0599640000000000ffffffff03e4ba8c0100000000160014190ec76b7843f47bc367b65119b98c32074536255dfd5e0a00000000160014d38fa4a6ac8db7495e5e2b5d219dccd412dd9baee4ba8c01000000001600147b4676f859b993257bc8d5880650fcab470db8a1024830450221008480d553177a020f58ca0e45b9e20aa027305a279a3de1014f55ff22909b89b1022054e848285ee60c169b5de19bb4d3637b606ff14bc4cca4506ad05a42fff6af400121029a82a00f05d023f188dfd1db82ef8ec136b0500bbd33bb1f65930c5b74e3199802463043021f01d3f4567c32fc0c5c0cd33db233a3c74100a36940d743b72042b55e60b89d022073ab203ad0fee389f2a2c9e62197244cea95b07ae78a5516ca9f866a8e348d2c01210245d8623c4b06505dffd21bdd314a84b73afe2b9d49a93fe89397b48a85b718bd00000000']
2020-12-16 11:43:22,678 [INFO] Successfully broadcast SNICKER coinjoin: 33ec857df09030140391529295412434cced8191626024f937426b7859a21947
2020-12-16 11:43:23,359 [INFO] Removed utxos=
b356baea2525e9c4fe15c863091c1b2df84abbec7332992381ed84016f6afa8f:0 - path: m/84'/1'/4'/0/0, address: bcrt1qwxcf47avvgzxyu39cy8n4r22qaynvn7mc359ap, value: 26000000
2020-12-16 11:43:23,360 [INFO] Added utxos=
33ec857df09030140391529295412434cced8191626024f937426b7859a21947:0 - path: imported/1/0, address: bcrt1qry8vw6mcg068hsm8keg3nwvvxgr52d3923gg45, value: 26000100
Obviously this is the ideal case: if no errors occur. If invalid proposals, or proposals on coins that no longer exist because you already spent them, are encountered, logging messages are displayed to that effect.
If you did choose the -n option then you can pass the copy-pasted proposal on the command line and it will just process that instead of polling.
The above is the baseline workflow. Additionally, you can test:
This case is already somewhat tricky in Joinmarket, but for the worst possible scenario of only having a seedphrase and no address imports in the wallet and no Joinmarket jmdat file, and having used SNICKER recently and not spent those coins, recovery is particularly tricky (which is why users who enable this feature must be warned that it’s very important not to lose the jmdat file). However even in this case full recovery is possible, using the script snicker-recovery.py. To fully test this try making multiple SNICKER transactions in a wallet, then deleting the jmdat and creating a new Core wallet (on the same regtest instance of course!), enabling it in joinmarket.cfg, then running wallet-tool.py recover with the seedphrase, then running the aforementioned snicker recovery script; it will prompt you to rescanblockchain from certain heights, potentially more than once; the reason for this is that Core cannot find arbitrarily the transactions which spend custom keys which we discover during wallet recovery, we need to import and rescan before going to the next step, although this will only be an edge case.
This is what is produced by print(jmbitcoin.human_readable_transaction(jmbitcoin.CTransaction.deserialize(jmbase.hextobin('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')))):
{
"hex": "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",
"inputs": [
{
"outpoint": "57b2ed3b8c2ebbadd286f6e436a31c28cf95d64fd562fe1f42ed2a73b2708757:0",
"scriptSig": "",
"nSequence": 4294967295,
"witness": "02473044022078f8106a5645cc4afeef36d4addec391a5b058cc51053b42c89fcedf92f4db1002200cdf1b66a922863fba8dc1b1b1a0dce043d952fa14dcbe86c427fda25e930a53012102f1f750bfb73dbe4c7faec2c9c301ad0e02176cd47bcc909ff0a117e95b2aad7b"
},
{
"outpoint": "33ec857df09030140391529295412434cced8191626024f937426b7859a21947:1",
"scriptSig": "",
"nSequence": 4294967295,
"witness": "02483045022100b9a6c2295a1b0f7605381d416f6ed8da763bd7c20f2402dd36b62dd9dd07375002207d40eaff4fc6ee219a7498abfab6bdc54b7ce006ac4b978b64bff960fbf5f31e012103c2a7d6e44acdbd503c578ec7d1741a44864780be0186e555e853eee86e06f11f"
}
],
"outputs": [
{
"value_sats": 27000100,
"scriptPubKey": "0014d38fa4a6ac8db7495e5e2b5d219dccd412dd9bae",
"address": "bc1q6w86ff4v3km5jhj79dwjr8wv6sfdmxaw2dytjc"
},
{
"value_sats": 27000100,
"scriptPubKey": "0014564aead56de8f4d445fc5b74a61793b5c8a81966",
"address": "bc1q2e9w44tdar6dg30utd62v9unkhy2sxtxtqrthh"
},
{
"value_sats": 146994810,
"scriptPubKey": "00146ec55c2e1d1a7a868b5ec91822bf40bba842bac5",
"address": "bc1qdmz4ctsarfagdz67eyvz906qhw5y9wk9dqpuea"
}
],
"txid": "ca606efc5ba8f6669ba15e9262e5d38e745345ea96106d5a919688d1ff0da0cc",
"nLockTime": 0,
"nVersion": 2
}