BSV Blockchain is pleased to announce that the private beta of the SPV Wallet is now available. To be part of the private beta users, please contact the team on the SPV wallet discord channel. The SPV Wallet clarifies the state-of-the-art technical architecture of BSV Wallets through its open-source, non-custodial framework, enabling seamless transaction verification and management at significantly reduced costs.
Designed for exchanges, wallet providers and businesses running BSV applications, it offers a reference implementation of simplified payment verification (SPV, section 8 of the whitepaper) for enhanced efficiency and security.
What is an SPV wallet?
SPV Wallet can be used in place of the BSV Blockchain node software to validate transactions and make outbound payments. Accepting payments in this way is better for compliance purposes because your server communicates directly with counterparties.
‘This allows KYC and AML data to be validated prior to any payment negotiations, domain-specific controls, and many configurable options to meet requirements in your jurisdiction,’ explains Darren Kellenschwiler, Technical lead of Utilisation at BSV Blockchain.
‘Running SPV Wallet in place of a full node leads to significant cost savings. This saving is due to the disparity between relevant transactions for the exchange, and overall network transaction volume,’ he said.
The average transactions per second settled on BSV Blockchain has been trending up rapidly for the last few years and is expected to skyrocket as we go forward. This will inevitably drive up costs for full node operators, and raise the corresponding demand for SPV Wallet solutions.
Key features
There are several key features of the SPV Wallet, including:
- Create accounts, sign transactions, and check balances;
- Send transactions;
- Receive and validate inbound transactions;
- Store your transactions and corresponding metadata;
- Confirm the presence of your transactions on the BSV blockchain;
- CLI, JavaScript, and Go clients for the Wallet API.
The planned roadmap includes a mobile wallet app, payment counterparty validation, and token support.
Understanding the components
Deploying the SPV Wallet will spin up several containerised services to create something which at a high level looks like the diagram below.
There are two user interfaces, the Wallet App, and the Admin Console. These drive an API hosted by the SPV Wallet Server. This Wallet Server also accepts payments from Other Wallets, and Broadcasts Transactions to ARC. ARC returns Merkle Paths to confirm transactions, which are validated by checking Merkle roots stored by Blockheader Service.
The SPV Wallet combines the components to form a fully operational hosted non-custodial open-source reference wallet for the ecosystem.
Minimal dependencies and easy installation
The new SPV Wallet requires minimal dependencies as it leverages lightweight SPV technology for efficient blockchain verification, says Thomas Giacomo, Director of Utilisation at BSV Blockchain.
‘The wallet is easy to install and deployable via Docker or from source, catering to diverse user needs and technical environments. The system directly connects to the BSV network, synchronizing only essential data for streamlined operations.
‘The wallet also provides versatile API access through CLI, JavaScript, and Go clients, simplifying integration and automation,’ Giacomo said.
Upcoming hackathon to feature SPV wallet
The new SPV wallet will be a key focus of the upcoming sCrypt hackathon which is being held in conjunction with BSV Blockchain.
The hackathon will take place virtually from March 16 to 17, 2024 with $5,000 prizes up for grabs!
Join us for an exciting hackathon where we’re unleashing the power of Ordinals support in the sCrypt development platform. Now equipped with Bitcoin smart contracts and Bitcoin tokens, developers have the tools necessary to create groundbreaking applications that were previously unimaginable.
Think trustless exchanges, atomic swaps, and the tokenisation of financial instruments. Our hackathon theme revolves around merging sCrypt (Bitcoin smart contracts) with Ordinals (Bitcoin tokens) to pioneer innovative solutions in the blockchain space.
You can find out more about the hackathon and the entry requirements here.