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Setup & Infrastructure

This section covers the setup and infrastructure needed for Bitcoin development: installing Bitcoin Core, testing and debugging, working with test networks, choosing libraries, understanding node architecture, and exploring Bitcoin Core internals.

Hands-on learning: Try Bitcoin RPC commands directly in the Bitcoin CLI Terminal. No node setup required.

Programming Languages in Bitcoin

C++ (Bitcoin Core)

The reference implementation of Bitcoin is written in C++.

Used for:

  • Bitcoin Core development
  • Performance-critical applications
  • Protocol-level changes
  • Consensus code

Key libraries:

  • libbitcoin: Full-featured Bitcoin library
  • libsecp256k1: Optimized elliptic curve library (used by Bitcoin Core)

When to use:

  • Contributing to Bitcoin Core
  • Building nodes or mining software
  • Maximum performance requirements
// Example: Creating a simple transaction hash
#include <bitcoin/bitcoin.hpp>

bc::hash_digest tx_hash = bc::bitcoin_hash(tx_data);

Rust

Increasingly popular for Bitcoin development due to memory safety and performance.

Used for:

  • Lightning implementations (LDK)
  • Wallet libraries
  • Cryptographic tools
  • New protocol implementations

Key libraries:

  • rust-bitcoin: Core Bitcoin data structures
  • rust-lightning (LDK): Lightning Development Kit
  • bdk (Bitcoin Dev Kit): Modern wallet library
  • rust-miniscript: Policy to script compiler

When to use:

  • New Bitcoin applications
  • Security-critical code
  • Modern wallet development
  • Lightning applications
// Example: Creating a Bitcoin address
use bitcoin::{Address, Network, PublicKey};

let address = Address::p2pkh(&public_key, Network::Bitcoin);

Python

Excellent for scripting, prototyping, and learning.

Used for:

  • Rapid prototyping
  • Data analysis and research
  • Educational tools
  • Automation scripts
  • API integrations

Key libraries:

  • python-bitcoinlib: Core Bitcoin library
  • bip32: HD wallet derivation
  • ecdsa: Elliptic curve operations
  • requests: API interactions

When to use:

  • Learning Bitcoin internals
  • Quick scripts and tools
  • Data analysis
  • API wrappers
# Example: Decode a raw transaction
from bitcoin.core import CTransaction

tx = CTransaction.deserialize(bytes.fromhex(raw_tx_hex))
print(f"Transaction has {len(tx.vin)} inputs and {len(tx.vout)} outputs")

JavaScript/TypeScript

Dominant in web applications and increasingly in Bitcoin tooling.

Used for:

  • Web wallets and applications
  • Browser extensions
  • Node.js backends
  • Frontend interfaces

Key libraries:

  • bitcoinjs-lib: Bitcoin library
  • bip39/bip32: Mnemonic and HD derivation
  • noble-secp256k1: Cryptographic primitives
  • bolt11: Lightning invoice encoding

When to use:

  • Web applications
  • Browser-based wallets
  • Full-stack development
  • Rapid development
// Example: Generate a new address
import * as bitcoin from 'bitcoinjs-lib';

const keyPair = bitcoin.ECPair.makeRandom();
const { address } = bitcoin.payments.p2wpkh({ 
  pubkey: keyPair.publicKey 
});

Go

Popular for infrastructure and server applications.

Used for:

  • Lightning implementations (lnd)
  • Server infrastructure
  • APIs and backends
  • DevOps tooling

Key libraries:

  • btcd: Alternative full node implementation
  • lnd: Lightning Network Daemon
  • btcutil: Bitcoin utilities

When to use:

  • Lightning node development
  • Backend services
  • Infrastructure tools
  • High-concurrency applications
// Example: Connect to lnd
import "github.com/lightningnetwork/lnd/lnrpc"

client := lnrpc.NewLightningClient(conn)
info, _ := client.GetInfo(ctx, &lnrpc.GetInfoRequest{})

Development Approaches

1. Full Node Development

Working directly with Bitcoin Core or alternative implementations.

What you'll do:

  • Run and configure full nodes
  • Use RPC interface for queries
  • Contribute to protocol development
  • Understand consensus rules

Getting started:

  1. Install Bitcoin Core
  2. Sync the blockchain (or use testnet/signet)
  3. Enable RPC interface
  4. Explore bitcoin-cli commands
# Basic node setup
bitcoind -daemon
bitcoin-cli getblockchaininfo
bitcoin-cli getmempoolinfo

2. Wallet Development

Building applications that manage keys and create transactions.

What you'll do:

  • Generate and manage keys
  • Create and sign transactions
  • Implement coin selection
  • Handle address types (P2PKH, P2WPKH, P2TR)

Key concepts:

Getting started:

  1. Choose a wallet library (BDK, bitcoinjs-lib, etc.) - see Libraries & SDKs
  2. Learn key derivation - see Bitcoin Development for key management
  3. Understand transaction structure - see Transaction Construction
  4. Implement on testnet first - see Test Networks

3. Lightning Development

Building on the Lightning Network for instant, low-fee payments.

What you'll do:

  • Run Lightning nodes
  • Open and manage channels
  • Create payment applications
  • Handle invoices and payments

Approaches:

  • LND + API: Run lnd, use REST/gRPC API
  • LDK: Embed Lightning Network in your application
  • Core Lightning: Plugin-based development
  • Eclair: JVM-based implementation

Getting started:

  1. Set up a Lightning node (lnd, Core Lightning, or Eclair)
  2. Connect to testnet
  3. Open channels with test nodes
  4. Build a simple payment application

4. Script and Smart Contract Development

Working with Bitcoin's scripting system.

What you'll do:

  • Write Bitcoin scripts
  • Create custom spending conditions
  • Work with timelocks and hashlocks
  • Implement multisig schemes

Key concepts:

Getting started:

  1. Learn basic OP codes
  2. Understand script execution
  3. Use miniscript for complex policies
  4. Test on signet

Development Networks

Mainnet

The real Bitcoin network. Use only for production applications.

Characteristics:

  • Real value at stake
  • ~10 minute block times
  • Full transaction fees

Testnet

Long-running test network. Coins have no value.

Characteristics:

  • Free testnet coins from faucets
  • Can have unpredictable block times
  • Occasionally reset

Getting coins:

Signet

More controlled test network with consistent block production.

Characteristics:

  • Predictable block times
  • Controlled by signers
  • Better for development

Getting coins:

Regtest

Local, private test network. You control everything.

Characteristics:

  • Instant block generation
  • Complete control
  • No external dependencies
  • Ideal for unit testing
# Start regtest
bitcoind -regtest -daemon

# Generate blocks (mine to your address)
bitcoin-cli -regtest generatetoaddress 101 <your-address>

Essential Tools

Block Explorers

Development Tools

APIs and Services

Documentation

Development Workflow

1. Start with Regtest

# Create a regtest environment
bitcoind -regtest -daemon
bitcoin-cli -regtest createwallet "dev"
bitcoin-cli -regtest -generate 101

2. Move to Signet/Testnet

Once your code works locally, test on public networks:

# Connect to signet
bitcoind -signet -daemon
bitcoin-cli -signet getblockchaininfo

3. Security Review

Before mainnet:

  • Audit key management
  • Review transaction construction
  • Check fee calculations
  • Test edge cases

4. Deploy to Mainnet

Only after thorough testing:

  • Start with small amounts
  • Monitor transactions
  • Have rollback plans

Common Pitfalls

Security

  • Never hardcode keys: Use environment variables or secure storage
  • Validate all inputs: Especially amounts and addresses
  • Use established libraries: Don't roll your own crypto
  • Test on testnet first: Always

Transaction Construction

For detailed transaction construction guidance, see Bitcoin Development:

  • Calculate fees properly: Too low = stuck, too high = waste
  • Handle dust: Outputs below ~546 sats may be unspendable
  • Sign correctly: Verify signatures before broadcasting
  • Use PSBT: For multi-party or hardware wallet signing

Network

  • Handle reorgs: Transactions can be reversed until deeply confirmed
  • Wait for confirmations: 6 blocks for high-value transactions
  • Don't trust unconfirmed: Zero-conf can be double-spent

Summary

Bitcoin development offers many paths:

LanguageBest ForKey Library
C++Bitcoin Core, performancelibbitcoin
RustModern apps, securityrust-bitcoin, BDK
PythonLearning, scriptingpython-bitcoinlib
JavaScriptWeb appsbitcoinjs-lib
GoLightning, infrastructurebtcd, lnd

Start small, use testnet, and build incrementally. The Bitcoin development community is welcoming; ask questions and contribute back.

Infrastructure Topics (This Section)

Practical Development

  • Bitcoin Development - Practical development tasks including PSBT, transaction construction, address generation, key management, blockchain monitoring, and more

Protocol & Other Topics

Resources