README.md

Peg-in & Peg-out Transactions Demo

We provide an example of the peg-in transaction, by which a user moves its coins to the Axelar validators' output, along with an example of the peg-out transaction, with which the Axelar validators unlock previously pegged-in BTC. These transactions are valid and would be accepted by the Bitcoin network. To verify this, they are passed to a running Bitcoin Core daemon set to a local (regtest) network and tested for acceptance by its mempool.

Setup

• Install Bitcoin Core:
  • Ubuntu: snap install bitcoin-core (If it requires other packages, install them first with apt.)
  • MacOS: follow the instructions found at https://bitcoin.org/en/full-node#osx-daemon.
• From a terminal, clone this repo: git clone [email protected]:commonprefix/axelar-btc.git.

Execution

• Start a Bitcoin Core daemon:
  • Ubuntu: bitcoin-core.daemon -chain=regtest
  • MacOS: bitcoind -daemon -chain=regtest
• Open a new terminal and navigate to the directory where this repo was cloned before.
• cargo run <path to .bitcoin directory>. Example paths:
  • Ubuntu: /home/<username>/snap/bitcoin-core/common/.bitcoin/
  • MacOS: /home/<username>/.bitcoin/
• The peg-in and peg-out transactions, along with a block that includes them, are printed.

Acknowledgements

• The Bitcoin Script used for this demo is inspired by: https://gist.github.com/mappum/da11e37f4e90891642a52621594d03f6
• rust-bitcoin was used to construct and sign Bitcoin transactions.
• rust-bitcoincore-rpc was used to communicate with the local Bitcoin regtest RPC.