bitcoin-deposit-handling-lld

Objective

This document is intended to outline generic design of a Bitcoin deposit handler, a component used for monitoring and processing deposits from a Bitcoin network.

For general information on deposit handlers, read: Generic Sidechain Deposit HLD

Asumptions

• Peerplays SON network is able to control (transfer or create) assets on Peerplays network - FULFILLED

• Peerplays SON network have full control over address/account on Bitcoin sidechain - FULFILLED (multisig addresses)

• Sidechain operating node has access to assets exchange rate list, containing exchange rates for every asset on every supported sidechain network - FULFILLED For Bitcoin, exchange rate is fixed 1 BTC = 1 PPY

• Sidechain operating node has access to user accounts mapping list, containing user addresses on supported sidechains - FULLFILLED

Block diagram

Link to draw.io file

https://drive.google.com/file/d/14HFGLqD8IV3ics1ojFcZ2xC6hRtFXLck/view?usp=sharing

Description

• Deposit process is initiated by sending BTC to a Bitcoin address which is registered as a sidechain user address for deposits

• Bitcoin listener will pick up this transaction

• Bitcoin sidechain handler will create sidechain_event_data data structure, with the information about transaction, and pass it to the sidechain_event_data_received

• sidechain_event_data_received will create a proposal for creating deposit descriptor object son_wallet_deposit_object

• When proposal is approved, object will be created, or if it is already created by another SON, it will be confirmed

• Scheduled SON will start processing withdrawals by creating Bitcoin transaction for sending funds from Bitcoin address which is registered as a sidechain user address for deposits to primary wallet (Bitcoin multisig address controlled by active SONs)

• Bitcoin transaction will be signed and sent to Bitcoin node

• User will receive Peerplays core asset matching the amount of deposited BTC

• Scheduled SON will mark son_wallet_deposit_object as processed