Bitcoin: Correct Configuration for Generating Bitcoin SegWit (BIP84) Addresses

Correct Configuration for Generating Bitcoin SegWit (BIP84) Addresses

As a beginner in the world of blockchain, it’s not uncommon to encounter issues with generating keys and addresses for SegWit-enabled cryptocurrencies like Bitcoin. In this article, we’ll explore the correct configuration for generating SegWit keys and addresses using bitcoinjs-lib.

Understanding SegWit and BIP84

Before diving into the configuration, let’s quickly review what SegWit and BIP84 are:

• SegWit: A new block size limit for Bitcoin, introduced in October 2018 to improve scalability. It allows for more efficient transaction processing and storage.

• BIP84

  : An open standard for generating public keys (also known as addresses) from private keys. It’s used by many cryptocurrencies that support SegWit, including Bitcoin.

Correct Configuration

To generate SegWit keys and addresses correctly using bitcoinjs-lib, follow these steps:

Step 1: Set up the secp256k1 private key

You can use a seed phrase or a private key to set up the secp256k1 curve. To do this, you’ll need to export your private key in PEM format and save it as privateKey.pem.

const secp256k1 = require('secp256k1');

const privateKey = fs.readFileSync('privateKey.pem', 'utf8');

Step 2: Use the BIP84 library

You can use the BIP84 library to generate public keys from your private key. To do this, you’ll need to import the BIP84 module and create a new instance of it.

const bip39 = require('bip39');

const bip84 = new bip39.BIP84();


// Generate a key from the private key using BIP44

const privateSeed = privateKey;

const publicSeed = bip84.generateKeyFromPrivate(privateSeed);

Step 3: Format the public key

Once you have your key, you’ll need to format it into a Bitcoin address. To do this, you can use the bip39.formatAddress function.

// Generate the bitcoin address from the key using BIP44

const address = bip84.formatAddress(publicSeed);

Example Use Case

Here’s an example of how you can generate SegWit keys and addresses using bitcoinjs-lib:

const secp256k1 = require('secp256k1');

const privateKey = fs.readFileSync('privateKey.pem', 'utf8');

const bip39 = require('bip39');


// Generate a key from the private key using BIP44

const privateSeed = privateKey;

const publicSeed = bip39.generateKeyFromPrivate(privateSeed);


// Format the public key into a Bitcoin address

const address = bip39.formatAddress(publicSeed);

console.log(Generated SegWit Address: ${address});

Conclusion

Generating SegWit keys and addresses with bitcoinjs-lib requires some configuration to get it working correctly. By following these steps, you should be able to generate public keys (also known as addresses) from your private key using the BIP84 library. Remember to use a seed phrase or private key to set up the secp256k1 curve, and format your public key into a Bitcoin address using the bip39.formatAddress function.

Additional Tips

• Make sure to update your bitcoinjs-lib installation to the latest version.

• Check the BIP84 documentation for any updates or changes to the library.

• Consider using a seed phrase or private key from an external source, such as a hardware wallet or online storage service.