Electrum Personal Server aims to make using Electrum bitcoin wallet more secure and more private. It makes it easy to connect your Electrum wallet to your own full node.
Full node wallets are important in bitcoin because they are a big part of what makes the system trustless. No longer do people have to trust a financial institution like a bank or Paypal, they can run software on their own computers. If bitcoin is digital gold, then a full node wallet is your own personal goldsmith who checks for you that received payments are genuine.
Full node wallets are also important for privacy. Using Electrum under default configuration requires it to send (hashes of) all your bitcoin addresses to some server. That server can then easily spy on your transactions. Full node wallets like Electrum Personal Server would download the entire blockchain and scan it for the user's own addresses, and therefore don't reveal to anyone else which bitcoin addresses they are interested in.
send-tx-over-sms.sh) the server can
broadcast transactions via SMS, radio or any other creative way.If you dont already have them, download and install Bitcoin Core version 0.17
or higher. Make sure you
verify the digital signatures
of any binaries before running them, or compile from source. The Bitcoin node
must have wallet functionality enabled, and must have the RPC server switched on (server=1
in bitcoin.conf). Create a wallet dedicated to Electrum Personal Server by running
bitcoin-cli createwallet electrumpersonalserver true true "" false false true
for Bitcoin Core v23.0 and up, or
wallet=electrumpersonalserver to the bitcoin.conf file for previous versions.
If you dont already have it, download and install
Electrum bitcoin wallet, and set up your Electrum
wallet (for example by linking your hardware wallet). To avoid damaging
privacy by connecting to public Electrum servers, disconnect from the
internet first or run Electrum with the command line argument
--server localhost:50002:s. To avoid accidentally connecting to public
electrum servers, also use the command line argument --offline.
Download the latest release
of Electrum Personal Server. If using Windows OS take the packaged binary
release build electrumpersonalserver-windows-release-XXX.zip.
Extract and enter the directory, and copy the file config.ini_sample to
config.ini. Edit the file config.ini to configure everything about the
server. Add your wallet master public keys or watch-only addresses to the
[master-public-keys] and [watch-only-addresses] sections. Master public
keys for an Electrum wallet (which start with xpub/ypub/zpub/etc) can be found
in the Electrum client menu Wallet -> Information. You can add multiple
master public keys or watch-only addresses by adding separate lines for the
different keys/addresses:
wallet1 = xpub661MyMwAqRbcF... wallet2 = xpub7712KLsfsg46G...
If you created a wallet dedicated to Electrum Personal Server in Bitcoin Core,
you have to modify the line wallet_filename in the [bitcoin-rpc] section
with the name of the wallet, for example wallet_filename = electrumpersonalserver.
If using the windows packaged binary release, drag the file config.ini onto
the file electrum-personal-server.exe to run the server, or on the command
line run electrum-personal-server config.ini.
If installing from the source release, install Electrum Personal Server in
your home directory with pip3 install --user .. On Linux the script
electrum-personal-server will be installed in ~/.local/bin. Please note,
if for some reason, you want to make a system-wide install, simply run
pip3 install . as root (e.g. if you have sudo setup, you could use:
sudo pip3 install .). Run electrum-personal-server /path/to/config.ini
to start Electrum Personal Server.
The first time the server is run it will import all configured addresses as
watch-only into the Bitcoin node, and then exit.
If the wallets contain historical transactions you can use the rescan script
(electrum-personal-server --rescan /path/to/config.ini) to make them appear.
If using the windows packaged binary release build then drag the file
config.ini onto the file electrum-personal-server-rescan.bat.
Run the server again which will start Electrum Personal Server. Wait until
the message Listening for Electrum Wallet ... appears and then tell
Electrum to connect to the server in Tools -> Server. By default the
server details are localhost if running on the same machine. Make sure the
port number matches what is written in config.ini (port 50002 by default).
Pro Tip: run Electrum wallet with the command line arguments --oneserver --server localhost:50002:s.
This stops Electrum connecting to other servers to obtain block
headers; and locks Electrum to connect only to your server, disabling the GUI
button to stop accidental connections. This helps avoid a user accidentally
ruining their privacy by connecting to public Electrum servers. Another way
to do this is to open Electrum's config file and edit the lines to
oneserver=true.
Pro Tip2: run tor on the same machine as Electrum Personal Server. Then by
default transactions will be broadcast through tor. If running tor, also set
walletbroadcast=0 in your bitcoin.conf. This prevents the node from
rebroadcasting transactions without tor.
cp config.ini_sample config.inipip3 install --user .~/.local/bin is in your \$PATH (echo $PATH). If not, add it:
echo 'PATH=$HOME/.local/bin:$PATH' >> ~/.profile, logout, and log in againelectrum-personal-server config.inielectrum-personal-server --rescan config.inielectrum --oneserver --server localhost:50002:s.Use pip3 uninstall electrum-personal-server, then use the same
pip3 install ... command as above to install the new version.
You can always use electrum-personal-server --version to check which version you're running.
Updating to a new version of Electrum Personal Server does not require a blockchain rescan.
Right now, Electrum Personal Server is easiest to use when it, your full node and your Electrum wallet are all on the same computer.
Other people should not be connecting to your server. They won't be
able to synchronize their wallet, and they could potentially learn all your
wallet transactions. By default the server will accept connections only from
localhost, though this can be changed in the configuration file.
The whitelisting feature can be used accept only certain IP addresses ranges connecting to the server. The Electrum protocol uses SSL for encryption. If your wallet connects over the public internet you should generate your own SSL certificate instead of using the default one, otherwise your connection can be decrypted. See the configuration file for instruction on how to do this.
Another option is to use a SSH tunnel to reach Electrum Personal Server. SSH
connections are encrypted and authenticated. This can be done on the command
line with: ssh username@host -L 50002:localhost:50002 or with Putty
for Windows. Then connect Electrum to localhost, and SSH will forward that
connection to the server.
Right now Electrum Personal Server can only accept one connection at a time.
Right now Electrum Personal Server does not support Lightning Network which Electrum wallet 4.0 and above implements.
They are different approaches with different tradeoffs. Electrum Personal Server is compatible with pruning, blocksonly and txindex=0, uses less CPU and RAM, is suitable for being used intermittently rather than needing to be always-on, and doesn't require an index of every bitcoin address ever used. The tradeoff is when recovering an old wallet, you must import your wallet first and you may need to rescan, so it loses the "instant on" feature of Electrum wallet. Other Electrum server implementations will be able to sync your wallet immediately even if you have historical transactions, and they can serve multiple Electrum connections at once.
Traditional Electrum servers inherently are not very scalable and use many resources which push people towards using centralized solutions. This is what we'd like to avoid with Electrum Personal Server.
Definitely check out other implementations:
I can be contacted on freenode IRC on the #bitcoin and #electrum channels,
by email or on twitter.
My PGP key fingerprint is: 0A8B 038F 5E10 CC27 89BF CFFF EF73 4EA6 77F3 1129.
Donate to help improve Electrum Personal Server: bc1qe74qzd256kxevq2gn7gmscs564lfk5tqrxqsuy. Signed donation addresses can be found here.
This is open source project which happily accepts coding contributions from anyone. See developer-notes.md.