Creating a regtest taproot descriptor wallet with bitcoind

tr_wallet_test.md

This gist demonstrates how to create a bitcoind wallet that is based on pay to taproot (P2TR) descriptors.

Tools used:

• docker with image bitcoindevkit/bitcoind:v22.0rc2
• bitcoin dev kit cli, bdk-cli

About bech32 vs bech32m addresses

Steps:

1. Create aliases to work with bitcoind docker image

alias rtstart='docker run --detach --rm -p 127.0.0.1:18443-18444:18443-18444/tcp -p 127.0.0.1:60401:60401/tcp --name bitcoind bitcoindevkit/bitcoind:v22.0rc2'
alias rtstop='docker kill bitcoind'
alias rtlogs='docker container logs bitcoind'
alias rtcli='docker exec -it bitcoind /root/bitcoin-cli -regtest -datadir=/root/.bitcoin $@'

2. Start bitcoind container

rtstart

3. Create testnet xprv key

XPRV=$(bdk-cli key generate | jq -r '.xprv')

4. Create an external descriptor with testnet xprv key and get it's checksum

EX_DESC="tr($XPRV/86h/1h/0h/0/*)"
EX_DESC_CS=$(rtcli getdescriptorinfo $EX_DESC | jq -r '.checksum')
EX_DESC=$EX_DESC#$EX_DESC_CS

5. Create an internal (change) descriptor with testnet xprv key and get it's checksum

IN_DESC="tr($XPRV/86h/1h/0h/1/*)"
IN_DESC_CS=$(rtcli getdescriptorinfo $IN_DESC | jq -r '.checksum')
IN_DESC=$IN_DESC#$IN_DESC_CS

6. Import descriptors to new "test" wallet

rtcli createwallet "test" false true "" false true false false
rtcli -rpcwallet=test importdescriptors "[{ \"desc\": \"$EX_DESC\", \"timestamp\":\"now\", \"active\": true, \"range\": [0,100]}, { \"desc\": \"$IN_DESC\", \"timestamp\":\"now\", \"internal\": true, \"active\": true, \"range\": [0,100]}]"

7. Get wallet info

rtcli -rpcwallet=test getwalletinfo

8. Get new receive address

rtcli -rpcwallet=test getnewaddress "" "bech32m"

9. Generate blocks to test wallet

rtcli generatetoaddress 101 <bech32m address>

10. Get wallet info again and see new balance of 50 BTC

rtcli -rpcwallet=test getwalletinfo

11. Create legacy wallet and send BTC to it

rtcli createwallet "legacy"
rtcli -rpcwallet=legacy getnewaddress
rtcli -rpcwallet=test sendtoaddress <legacy address> 1
rtcli -rpcwallet=test getnewaddress "" "bech32m"
rtcli generatetoaddress 1 <bech32m address>
rtcli -rpcwallet=legacy listtransactions

ACK, can generate P2TR addresses and send/receive coins using the Taproot wallet successfully.
Working perfectly!