Skip to content

Simple app that creates a transaction structured for fundraising an, ALL|ANYONECANSPEND sighash where anyone can contribute inputs

Notifications You must be signed in to change notification settings

bucko13/bitcoin-fundraise

Repository files navigation

Bitcoin Fundraising Transaction

These are two simple apps that show you how to template transactions for use in fundraising. The idea was inspired by an idea proposed in Mastering Bitcoin by Andreas Antonopolous in Chapter 6 in the section about SIGHASH flags.

The basic idea is to create a single transaction with a predetermined output and then you take individual contributions, i.e. inputs, where the signatures on the inputs are on the transaction excluding all other inputs (this is what an ALL|ANYONCANPAY sighash indicates). When the transaction is fully funded then you convert into an immutable transaction and can publish to the network.

SIGHASH Flags and ALL|ANYONECANPAY

No way I could explain it better than the master himself.

From "Mastering Bitcoin":

The way SIGHASH flags are applied during signing and verification is that a copy of the transaction is made and certain fields within are truncated (set to zero length and emptied). The resulting transaction is serialized. The SIGHASH flag is added to the end of the serialized transaction and the result is hashed. The hash itself is the "message" that is signed. Depending on which SIGHASH flag is used, different parts of the transaction are truncated. The resulting hash depends on different subsets of the data in the transaction. By including the SIGHASH as the last step before hashing, the signature commits the SIGHASH type as well, so it can’t be changed (e.g., by a miner).

ALL|ANYONECANPAY This construction can be used to make a "crowdfunding”-style transaction. Someone attempting to raise funds can construct a transaction with a single output. The single output pays the "goal" amount to the fundraiser. Such a transaction is obviously not valid, as it has no inputs. However, others can now amend it by adding an input of their own, as a donation. They sign their own input with ALL|ANYONECANPAY. Unless enough inputs are gathered to reach the value of the output, the transaction is invalid. Each donation is a "pledge," which cannot be collected by the fundraiser until the entire goal amount is raised.

How it works

There are two examples both built entirely with the bcoin library. The first example works directly with the bcoin utilities and doesn't actually transmit anything to the network. This means it does some address/key management that would otherwise be handled by the wallet service. The second example uses wallet accounts on the bitcoin testnet. This means that in order for it to work you need to have funded wallets available in order to make test them properly.

Extra Features

Obviously this is extremely basic. Interesting ideas for how to extend include:

  • More flexible contribution scheme (currently it's just 2 funders that split the amount evenly). E.g. custom number of contributers, custom contribution amount, etc.
  • UX to let people interact with the transaction via a browser
  • More advanced interface for fee estimation and include platform for large number of funders (for example, since you may be limited to number of funders per tx, you could include interface for multiple transactions for a single campaign. You would also want to include a check to make sure your tx is not bigger than 100kb otherwise it'll get rejected by the network)
  • Add a fund matching scheme where someone can say they will match future contributions
  • Currently the examples split transactions to make a coin available that equals the target contribution amount. This expensive since you ahve broadcast multiple transactions. An interface to choose to donate from available available coins might help to make this more efficient.

Working With Transactions in Bcoin

Some code heavily borrowed from the bcoin example on working with transactions. It's definitely worth taking a look to better understand the basics of how you can work with keys, keyrings, coins, and transactions with the bcoin library: Working with Transactions

About

Simple app that creates a transaction structured for fundraising an, ALL|ANYONECANSPEND sighash where anyone can contribute inputs

Resources

Stars

Watchers

Forks

Releases

No releases published

Packages

No packages published