Bitcoin Integration

What is the Runes Protocol?

The Runes protocol is a fungible token protocol built on Bitcoin that allows for the creation and transfer of tokens directly on the Bitcoin blockchain. Unlike other token standards, Runes leverages Bitcoin's native UTXO model for efficient and secure token transfers.

Key Features

Native Bitcoin

Tokens exist on the Bitcoin mainnet without requiring a separate layer

UTXO-based

Leverages Bitcoin's proven UTXO model for better efficiency

No Off-chain Dependencies

All data is stored on the Bitcoin blockchain

Fungible Tokens

Perfect for reward and incentive systems

Setting Up Bitcoin Node

Option 1: Run Your Own Bitcoin Node

Use the provided setup script to deploy a Bitcoin Core node with Runes support:

#!/bin/bash
# Download and run the setup script
curl -sSL https://raw.githubusercontent.com/OWASP-BLT/BLT-Bacon/main/setup_bacon_node.sh | bash

# Or manually:
git clone https://github.com/OWASP-BLT/BLT-Bacon.git
cd BLT-Bacon
chmod +x setup_bacon_node.sh
./setup_bacon_node.sh

Option 2: Use a Bitcoin Node Service

Connect to a third-party Bitcoin node provider:

// Configure with external node
const bacon = new BaconSDK({
  blockchain: 'bitcoin',
  network: 'mainnet',
  rpc: {
    url: 'https://your-bitcoin-node.com',
    username: 'your_username',
    password: 'your_password'
  }
});

Bitcoin Node Configuration

Essential settings in bitcoin.conf:

server=1
daemon=1
txindex=1
rpcuser=yourusername
rpcpassword=yourpassword
rpcallowip=127.0.0.1
rpcport=8332
addresstype=bech32

# Runes-specific settings
enablerunes=1
runesindex=1

Creating BACON Tokens on Bitcoin

1

Initialize Token

Create your BACON token on Bitcoin:

const { BitcoinRunes } = require('@blt-bacon/bitcoin');

const runes = new BitcoinRunes({
  network: 'mainnet',
  rpcUrl: process.env.BITCOIN_RPC_URL,
  rpcUser: process.env.BITCOIN_RPC_USER,
  rpcPassword: process.env.BITCOIN_RPC_PASSWORD
});

// Create BACON token
const tokenId = await runes.createToken({
  name: 'BACON',
  symbol: 'BACON',
  decimals: 8,
  supply: 21000000, // Total supply
  description: 'Blockchain Assisted Contribution Network Token'
});

2

Mint Tokens

Mint BACON tokens for distribution:

// Mint tokens to treasury wallet
await runes.mint({
  tokenId: 'BACON',
  amount: 1000000,
  destination: treasuryAddress
});

// Check balance
const balance = await runes.getBalance(treasuryAddress, 'BACON');
console.log(`Treasury balance: ${balance} BACON`);

3

Distribute Rewards

Send BACON tokens as rewards:

// Transfer tokens to contributor
await runes.transfer({
  tokenId: 'BACON',
  from: treasuryAddress,
  to: contributorAddress,
  amount: 100,
  memo: 'Reward for fixing bug #123'
});

// Batch transfer for multiple recipients
await runes.batchTransfer({
  tokenId: 'BACON',
  from: treasuryAddress,
  transfers: [
    { to: address1, amount: 50 },
    { to: address2, amount: 75 },
    { to: address3, amount: 100 }
  ]
});

Bitcoin Features Integration

Schnorr Signatures

Enhanced privacy and efficiency with Schnorr signatures

// Use Schnorr signatures
const tx = await runes.createTransaction({
  signatureType: 'schnorr',
  outputs: [{
    address: recipientAddress,
    amount: 100,
    tokenId: 'BACON'
  }]
});

Taproot Integration

Leverage Taproot for complex smart contracts

// Taproot contract
const contract = await runes.createTaprootContract({
  conditions: {
    minContributions: 5,
    timelock: '30 days'
  },
  reward: { amount: 500 }
});

Lightning Network

Fast, low-cost transfers via Lightning Network

// Lightning payment
const lightning = await runes.connectLightning({
  nodeUrl: process.env.LIGHTNING_NODE_URL
});

await lightning.sendPayment({
  amount: 25
});

Fee Management

Optimize transaction fees dynamically

const bacon = new BaconSDK({
  blockchain: 'bitcoin',
  fees: {
    strategy: 'dynamic',
    priority: 'medium',
    maxFeeRate: 50
  }
});

Security Best Practices

Wallet Security

Use hardware wallets for treasury management
Implement multi-signature requirements
Keep private keys encrypted and secure
Use separate hot and cold wallets

Transaction Security

Verify all addresses before sending
Use RBF for stuck transactions
Monitor for double-spend attempts
Implement rate limiting on rewards

Node Security

Keep Bitcoin Core updated
Enable firewall and restrict RPC access
Regular backups of wallet.dat
Monitor node health and sync status

Audit Trail

Log all reward distributions
Maintain transaction history
Regular audit of token balances
Implement fraud detection

Ready to Use Bitcoin?

Start rewarding contributors with Bitcoin-based BACON tokens

Get Started View API Reference