UTXO-Based Bitcoin‑Like Network with Central Server, Miner, Faucet & Wallet

[Shradhesh71]

This PR introduces the foundational architecture and code for a simplified Bitcoin‑style network, built on a UTXO model. It establishes four core services—central server, miner server, fund (faucet) server, and wallet server—as well as a Next.js frontend to interact with the network.

Key Components

1. Central WebSocket Server (central-server/)

   • Manages peer connections via WebSocket
   • Relays block and transaction messages between all miners
   • Tracks the canonical blockchain height and broadcasts chain reorgs

2. Miner Server (miner-server/)

   • Mines new blocks using proof‑of‑work (adjustable difficulty)

   • Validates incoming blocks and transactions:

     • Verifies digital signatures
     • Checks UTXO existence and balances
     • Rejects orphaned or smaller chains

   • Syncs with central server on startup to catch up to the latest chain tip

   • Broadcasts newly mined blocks back to the central server

3. Fund (Faucet) Server (faucet-server/)

   • Dispenses small test‐net coins via a simple “claim” API
   • Records UTXOs for faucet payouts
   • Prevents double‐claims through rate‑limiting per wallet address

4. Wallet Server (wallet-server/)

   • Exposes REST endpoints to:

     • Create and manage local keypairs (Bitcoin‑style WIF)
     • Build and sign UTXO transactions
     • Query balance by scanning UTXO set from central server

   • Submits signed transactions to the network via the central server

5. Next.js Frontend (wallet-ui/)

   • User interface for:

     • Generating a new BTC‑style wallet (seed & address)
     • Displaying current UTXO balance and transaction history
     • Creating, signing, and broadcasting transactions
     • Claiming from the faucet and viewing airdrop events

   • Connects to wallet server over REST and listens to block events via WebSocket

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Installation & Running Locally

1. Clone & Install

   git clone https://github.com/shradhesh71/request-for-code
   cd request-for-code
   cd rfc-1
   ./start-all.sh

   • Visit http://localhost:3000 to access the wallet interface.

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Testing

• Block Propagation:

  1. Mine a block on one miner; ensure it appears on all connected miners.

• UTXO Validation:

  1. Send a transaction from Wallet A to Wallet B; confirm UTXO is created/consumed properly.

• Faucet Rate Limit:

  1. Claim coins multiple times; verify rate‑limit enforcement.

• Chain Reorg Handling:

  1. Simulate conflicting chains with different lengths; verify that miners adopt the longest valid chain.

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Next Steps

• Add automated tests for consensus rules and wallet operations
• Implement transaction mempool with fee prioritization
• Enhance UI with real‑time block & mempool status
• Deploy to a cloud environment with Docker and Kubernetes manifests

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Merging this PR will lay the groundwork for all subsequent feature development, including advanced transaction types, peer discovery, and production‑grade security improvements.