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bitcoin-nfts / bitcoin-colors

A sample NFT collection that shows the strong connection between Stacks and Bitcoin.
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Analyzing Common BTC Wallet Transactions #2

Closed whoabuddy closed 1 year ago

whoabuddy commented 1 year ago

If we imagine the user will be sending the BTC from any wallet, then it'd be worth testing out a few of the more popular wallets to identify what transaction data we're working with.

Note: for the project structure we're talking about, the inputs will be interesting to evaluate as a user may or may not know what Bitcoin address they are sending from.

You'll see two links for each example, Blockstream.info was easier to read/digest but Blockchain.com lists out the inputs/outputs in much more detail.

Still to be tested:

Any others that should be on this list?

whoabuddy commented 1 year ago

BlueWallet

Website: https://bluewallet.io/

blue-walllet-send-screen

Example: BlueWallet to Xverse https://blockstream.info/tx/0a26f11f632914b54c80b962e1a777527b26b4ba3475cad5829c558fa42bdb5e?output:1 https://www.blockchain.com/btc/tx/45413a00e18150f4828df6fc8b1ed2509a11ed4609a8ed8c5aa3614969fd0ff3

Example: BlueWallet to Exodus https://blockstream.info/tx/c08e9a896a6ab02d5f77eeecd36025491d60b062dbae9b683e01244c19e75ed6 https://www.blockchain.com/btc/tx/c08e9a896a6ab02d5f77eeecd36025491d60b062dbae9b683e01244c19e75ed6

Notes

How would this user know what address/NFT they are minting?

whoabuddy commented 1 year ago

Mycellium

Website: https://wallet.mycelium.com/

mycellium-send-screen

Example: Mycellium to Xverse https://blockstream.info/tx/b74db438890db3ec5e65ab1d816113ec11feff49daa392808adccbbf90e0960d https://www.blockchain.com/btc/tx/b74db438890db3ec5e65ab1d816113ec11feff49daa392808adccbbf90e0960d

inputs:

outputs:

Notes

whoabuddy commented 1 year ago

Exodus

Website: https://www.exodus.com/

exodus-send-screen

Example: Exodus to Mycellium (legacy segwit) https://blockstream.info/tx/b5d34edbffd202fcaa6df157e0ad2f0c1ac79cc567660f778b6c0b72640789b3 https://www.blockchain.com/btc/tx/b5d34edbffd202fcaa6df157e0ad2f0c1ac79cc567660f778b6c0b72640789b3

inputs:

outputs:

Example: Exodus to Mycellium (native segwit) https://blockstream.info/tx/ba9bb7aa4a34acb9196dbf5bc44b64f5ab17be34d82521091898fef91c463940 https://www.blockchain.com/btc/tx/ba9bb7aa4a34acb9196dbf5bc44b64f5ab17be34d82521091898fef91c463940

inputs:

outputs:

Notes

whoabuddy commented 1 year ago

Xverse

Website: https://www.xverse.app/

(no screenshot - security policy)

Example: Xverse to Ledger (Native Segwit) https://blockstream.info/tx/27d4578f928078f20c402698adeede6769c1c26d4d4af6272bfb04bf270606f4 https://www.blockchain.com/btc/tx/27d4578f928078f20c402698adeede6769c1c26d4d4af6272bfb04bf270606f4

inputs:

outputs:

Notes

whoabuddy commented 1 year ago

Ledger

Website: https://www.ledger.com/

Screenshot from 2022-11-03 07-17-29

Example: Ledger to Trezor (native segwit) https://blockstream.info/tx/eff49035861980f9c5a2d81bc1f394d9be84cd98097875e22a2afd45f0302877 https://www.blockchain.com/btc/tx/eff49035861980f9c5a2d81bc1f394d9be84cd98097875e22a2afd45f0302877

inputs:

outputs:

Notes

whoabuddy commented 1 year ago

Trezor

Website: https://trezor.io/

Screenshot from 2022-11-03 11-12-05

Example: Trezor to Bluewallet (native segwit) https://blockstream.info/tx/cc47d78bad23f8cb3eb0a2393c48681b00c83b8afbfa743e5ee25922a317df7e https://www.blockchain.com/btc/tx/cc47d78bad23f8cb3eb0a2393c48681b00c83b8afbfa743e5ee25922a317df7e

inputs:

outputs:

Notes

whoabuddy commented 1 year ago

In the context of the wallets above:

If the wallet doesn't show what address your sending from (or offer coin control), then how would someone know what address to reveal before they send Bitcoin to mint the same NFT that was generated?

Addressed in mint flow - random first, advanced mode: use a certain address (UTXO).

Are there any ways a QR code can specify certain inputs for the tx in any of these wallets?

whoabuddy commented 1 year ago

Should we also test exchange transactions in the same way?

This should be a call to action for people to manage their own keys.

whoabuddy commented 1 year ago

Adding some additional analysis in table format as well as a basic description of each address type in more detail. Figure we can move this to a more relevant location later and planning to add some images in Miro next.

Bitcoin Address Types

Address Type Name Abbreviation Standard Encoding Address Format Derivation Path
Pubkey hash (Legacy) P2PKH BIP 44 Base58Check Starts with 1 m/44’/0’/0’/0/0
Script hash (e.g. multisig) P2SH BIP 49 Base58Check Starts with 3 m/49’/0’/0’/0/0
Wrapped Segwit P2SH-P2WSH BIP 49 Base58Check Starts with 3 m/49’/0’/0’/0/0
Wrapped Segwit P2SH-P2WPKH BIP 49 Base58Check Starts with 3 m/49’/0’/0’/0/0
Native Segwit P2WSH BIP 84 Bech32 Starts with bc1q m/84’/0’/0’/0/0
Native Segwit P2WPKH BIP 84 Bech32 Starts with bc1q m/84’/0’/0’/0/0
Taproot P2TR BIP 86 Bech32m Starts with bc1p m/86’/0’/0’/0/0

Bitcoin Transaction Analysis

Transfer Inputs Input Type Outputs Output Type Change Change Type
Blue Wallet to Xverse 1 P2WPKH 2 P2SH-P2WPKH no P2WPKH
Blue Wallet to Exodus 1 P2WPKH 2 P2WPKH yes P2WPKH
Mycelium to Xverse 2 P2WPKH + P2SH-P2WPKH 2 P2SH-P2WPKH yes P2SH-P2WPKH
Exodus to Mycelium 1 P2WPKH 1 P2SH-P2WPKH no (none)
Exodus to Mycelium 2 2 P2WPKH 2 P2WPKH no P2WPKH
Xverse to Ledger 2 P2SH-P2WPKH 2 P2WPKH yes P2SH-P2WPKH
Ledger to Trezor 1 P2WPKH 1 P2WPKH no (none)
Trezor to Bluewallet 1 P2WPKH 1 P2WPKH no (none)
whoabuddy commented 1 year ago

Here are some screenshots based on the transactions, the first showing the transactions made per wallet with inputs/outputs, and the second showing the overall flow of Bitcoin UTXOs including unspent change outputs.

Bitcoin Wallet Test Transactions

In this image each wallet's inputs and outputs are listed, matching the analysis table above.

bitcoin-wallet-test-transactions

Bitcoin Wallet Test Transaction Flow

In this image each transfer is mapped out starting with the wallet that performed the action, followed by the inputs, outputs, and any change addresses (marked in purple).

bitcoin-wallet-test-transaction-flow

The conclusion is that a normal wallet user will not know what address (inputs) they are sending from without using an advanced setting, commonly labeled "coin control", that allows the user to select the transaction inputs.

Higher-res versions of these images are available on the shared Miro board in this frame.

whoabuddy commented 1 year ago

Closing this one out since the research led us to the flow of onboarding into a new wallet like Xverse, reducing the number of variables and complexity. A manual process will still be possible using the correct constraints, and further support could be added for things like native segwit in future iterations.