This is actually real scenario.
1. Visitor comes to online store and clicks "buy product X for bitcoins" out of curiocity.
2. Temporary bitcoin address is generated, as no one knows if that a real buyer or just clicker.
3. Above process happen few times before real buyer comes. He got address with, say, index #7 before unused addresses expires for reuse.
4. Merchant never sees money coming unless he adjusts gap limit according to missing Step 4 instructions.

Gleb

Are there any other deterministic wallets (besides Electrum) that allows to use Master Public Key representing the wallet to safely generate "receive only" addresses?

Does change addresses are generated using special index numbers outside of gap limit?

They need to be able to be deterministically restored eventually?

Step 4: Adjust "Gap Limit" of your Electrum wallet to be equal or higher than number of payments addresses generated at your acceptbit.com merchant URL.
Otherwise you'll never see the payments beyond the 5-th address.

Gleb

As I understand if gap limit is 20 and address with zero-based index #15 is used  - electrum will allocate 16 more addresses?
If address #15 will become empty again (funds from it sent out elsewhere making it's balance zero) - will it be returned to "gap pool" ?

The only thing the front page is missing is "Step 4" to describe in details how people can get hold of Bitcoins received.
Otherwise it looks like deposit-only solution.

So if someone used acceptbit.com to make a sales - he than has to write a special program to get hold of funds???

Thanks to BkkCoins for great work - Bounty sent.

Gleb
http://www.bitcoinway.com/

Thank you.

My scenario is - online merchant uses accepbit.com model to generate addresses from MPK for each order.

How does merchant gets hold of the funds after making few thousand sales?

What are the steps?

I've generated bitcoin address using mpk, using index with high value =  184926
How do i import it into my wallet?

No, i haven't paid anyone else yet - so if you want to go ahead - I reserve the bounty for you.
If you'd give me time estimate - that would be great.


Sure - let just add an extra param - "$index" to it. Let assume calling code will take care of index tracking.
And no problem with high gap value at wallet (although I just personally need to learn what it really is).


I want PHP code to be compatible with hosting accounts that do not allow shell commands or do not have python installed.
So pure PHP would be preferred. But python utility would still be useful to have to test final PHP code against.

Feel free to email me directly at: gleb/at/bitcoinway.com

Gleb

Hi ThomasV,

First, thank much for your great effort.

How hard (or how much money) would it take to accomplish this: https://github.com/spesmilo/electrum/issues/170
(task described more here)

I looked at merchant.py - but i don't think it helps much to do what i want.

I need single, standalone, self-contained function (with all the glorious math included) to generate bitcoin addresses from master public key.

Could you help me to write a standalone, fully self-contained (no dependency on other services) function to generate bitcoin addresses using Electrum wallet's Master Public Key? Preferably in PHP.

I'd be happy to donate to the effort.

I published a little bounty project about it here.

Thanks, bitfreak.info link sounds interesting. I contacted their people for possible help.

Wordpress.org + WooCommerce plugin + Bitcoin Payments for WooCommerce = your own free online store to sell digital and physical products and use bitcoin along with any other currency and any other payment processor.

There is a bounty posted for anyone who can translate this function from Python to PHP here:
https://bitcointalk.org/index.php?topic=163915.0

Gleb

-= Project completed =-

Current bounty: 1 BTC.

I need one standalone PHP function created that takes as a parameter Electrum wallet's Master Public Key to generate Bitcoin addresses:

$new_bitcoin_address = generate_bitcoin_address ($master_public_key);

There is an open source project - acceptbit.com (sources are here) that already utilizes this functionality, but it is written on Python, just like all other Electrum software.
Here are sources for Electrum client

I neither good at math nor at Python and need this function written in PHP to utilize it within Wordpress plugin.

So someone who knows both Python and PHP would likely be able to do that.

Here's more description of the project I working on.

Intro:
here's the Wordpress plugin I wrote recently allowing anyone to accept bitcoins as a payment method at their online stores:
http://wordpress.org/extend/plugins/bitcoin-payments-for-woocommerce/

It utilizes free WooCommerce online store plugin (to create inventory, shopping cart) as well as blockchain.info API and acts as a payment extension for it.

Now I want to write another, more universal wordpress plugin that will allow anyone with a blog to accept bitcoin payments without relying on any third party service.
To make it happen in a secure manner I want to utilize Electrum wallet's Master Public Key to generate "watch only" bitcoin addresses.
(Very similar to acceptbit.com model - but i want this whole technology to be integrated within Wordpress plugin).
This way if any hacker will get into merchant's website code or database - he couldn't steal anything - no private keys are stored anywhere.

For that I need a little bit of a community help!

The only stumbling block for me is to get the code for standalone function (preferably in PHP) that takes master public key and returns bitcoin address like this:

$new_bitcoin_address = generate_bitcoin_address ($master_public_key);

If anyone who is familiar with Electrum math could assist me in that - we'll have universal, open source, standalone solution for Wordpress allowing anyone to sell stuff and accept bitcoins with a click of a button.

(Donations are welcome too of course).

Thanks!

Gleb

I just did it for free as a fun project:
http://wordpress.org/extend/plugins/bitcoin-payments-for-woocommerce/

Hope you didn't spend much on elancers

Gleb

Thanks!