Bitcoin Wallet

DO NOT USE! ONLY FOR TESTING PURPOSES

This project contains Python code to generate Bitcoin wallets, including both private/public keys and addresses, using hierarchical deterministic (HD) key derivation techniques. The project features a Python-based approach using Jupyter Notebook to interact with wallet management functionalities.

The solution consists of the following components:

• Bitcoin-Wallet.ipynb: Implements the core operations for wallet generation, key derivation, and address management.
• english.txt: Provides a word list for BIP-39 mnemonic generation.

The intended audience for this README is experienced developers who are familiar with cryptographic concepts and hierarchical key derivation (such as BIP-32, BIP-39). The code relies on Python libraries for cryptographic functions and mnemonic generation.

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Key Features

• Mnemonic Phrase Generation: Uses a BIP-39-compatible word list to convert entropy into a human-readable mnemonic phrase.
• Master and Child Key Derivation: Utilizes HMAC-SHA512 to derive a master key and chain code for hierarchical deterministic key generation.
• Bitcoin Address Management: Allows for the generation of Bitcoin addresses from derived keys.
• Jupyter Notebook Integration: Provides an interactive environment for generating and managing wallets.

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Code Walkthrough

Bitcoin-Wallet.ipynb

This notebook is responsible for the cryptographic backend and wallet generation operations, which include entropy generation, checksum calculation, and key derivation.

Steps of Wallet Generation

1. Generate Entropy:
   • The function generates 128 bits of entropy.
2. Calculate Checksum:
   • Computes a checksum from the SHA-256 hash of the entropy.
3. Append Checksum to Entropy:
   • Combines the checksum with the original entropy to form 132 bits.
4. Split Binary Data into 11-bit Parts:
   • The binary data is divided into twelve 11-bit segments.
5. Convert Parts to Mnemonic Words:
   • Uses the BIP-39-compatible word list (english.txt) to map 11-bit segments to words.
6. Derive Seed from Mnemonic:
   • A seed is generated using PBKDF2-HMAC-SHA512 from the mnemonic phrase.
7. Master Key and Chain Code Derivation:
   • HMAC-SHA512 is used to derive the master private key and chain code from the seed.
8. Generate Master Public Key:
   • A public key is derived using elliptic curve cryptography (secp256k1).
9. Child Key Derivation:
   • Supports hierarchical key derivation for both hardened and non-hardened child keys.

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Requirements

• Python 3.7+
• Jupyter Notebook
• Required libraries listed in requirements.txt

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Dependencies

Install the following dependencies before running the project:

• bit: Bitcoin library for address generation and interaction (pip install bit)
• ecdsa: Library for elliptic curve operations (pip install ecdsa)
• PyQt5: For graphical user interface integration (if planning to add a GUI) (pip install PyQt5)

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Installation

1. Clone the repository:

   git clone https://github.com/KyllianGenot/Bitcoin-Wallet.git
   cd Bitcoin-Wallet

2. Install the required dependencies:

   pip install -r requirements.txt

3. Install Jupyter (if not already installed):

   pip install jupyter

4. Open the Jupyter Notebook:

   jupyter notebook Bitcoin-Wallet.ipynb

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Usage

1. Generate a new mnemonic phrase:
   • Run the notebook cells to create a mnemonic using the word list in english.txt.
2. Create a new wallet:
   • Use the generated mnemonic to create and manage a new wallet.
3. Manage transactions:
   • Generate addresses and perform operations such as querying balance and signing transactions.

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Important Notes

• Wordlist: The word list used for mnemonic generation is provided in english.txt and should conform to BIP-39 (2048 words).
• Test Environment Only: This code is intended for educational purposes and testing. It is not suitable for use in a production environment.
• Security: Always store private keys and mnemonic phrases securely.

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License

This project is licensed under the MIT License.

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Acknowledgements

• BIP-32 and BIP-39 standards for hierarchical deterministic wallets.
• The Python bit library for Bitcoin address and key management.

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By following this guide, you can explore the inner workings of Bitcoin wallet generation and hierarchical key derivation techniques.