Bitcoin Protocol Engine

Bitcoin protocol abstraction layer supporting multiple variants and protocol evolution.

For verified system status: See SYSTEM_STATUS.md in the BTCDecoded organization repository.

Provides a Bitcoin protocol abstraction layer enabling:

• Multiple Bitcoin variants (mainnet, testnet, regtest)
• Protocol evolution support
• Economic model abstraction
• Commons-specific protocol extensions (UTXO commitments, ban list sharing)
• Research-friendly interfaces

Architecture Position

Tier 3 of the 6-tier Bitcoin Commons architecture (BLVM technology stack):

1. blvm-spec (Orange Paper - mathematical foundation)
2. blvm-consensus (pure math implementation)
3. blvm-protocol (Bitcoin abstraction)
4. blvm-node (full node implementation)
5. blvm-sdk (developer toolkit)
6. blvm-commons (governance enforcement)

Features

• Protocol Variants: Mainnet, testnet, regtest support
• Network Messages: Core P2P messages and BIP152 compact blocks
• FIBRE Protocol: High-performance relay protocol with packet format definitions
• Governance P2P surfaces: Optional commons-related P2P messages and flags — see NetworkMessage / src/ and the published book protocol chapters.
• Commons Extensions: UTXO commitments, filtered blocks, ban list sharing
• Service Flags: Standard and Commons-specific capability flags
• Validation Rules: Protocol-specific size limits and validation
• BIP Support: BIP152, BIP157, BIP158, BIP173/350/351
• DoS Protection: Protocol-level message size limits

Purpose

Sits between pure mathematical consensus rules (blvm-consensus) and full Bitcoin implementation (blvm-node). Provides:

Protocol Abstraction

• Multiple Variants: Support for mainnet, testnet, and regtest
• Network Parameters: Magic bytes, ports, genesis blocks, difficulty targets
• Feature Flags: SegWit, Taproot, RBF, and other protocol features
• Validation Rules: Protocol-specific size limits and validation logic

Protocol Evolution

• Version Support: Multiple protocol versions
• Feature Management: Enable/disable features based on protocol version
• Breaking Changes: Track and manage protocol evolution

Commons-Specific Extensions

• UTXO Commitments: Protocol messages for UTXO set synchronization and verification
• Filtered Blocks: Spam-filtered block relay for efficient syncing
• Ban List Sharing: Distributed ban list management
• Service Flags: Standard and Commons-specific capability flags

Core Components

Protocol Variants

• BitcoinV1: Production Bitcoin mainnet
• Testnet3: Bitcoin test network
• Regtest: Regression testing network

Network Parameters

• Magic Bytes: P2P protocol identification
• Ports: Default network ports
• Genesis Blocks: Network-specific genesis blocks
• Difficulty: Proof-of-work targets
• Halving: Block subsidy intervals

Network Messages

• Core P2P Messages: Version, VerAck, Addr, Inv, GetData, GetHeaders, Headers, Block, Tx, Ping, Pong, MemPool, FeeFilter
• Additional Core Messages: GetBlocks, GetAddr, NotFound, Reject, SendHeaders
• BIP152 (Compact Block Relay): SendCmpct, CmpctBlock, GetBlockTxn, BlockTxn
• Commons Extensions: GetUTXOSet, UTXOSet, GetFilteredBlock, FilteredBlock, GetBanList, BanList

Service Flags

• Standard Flags: NODE_NETWORK, NODE_WITNESS, NODE_COMPACT_FILTERS, NODE_NETWORK_LIMITED
• Commons Flags: NODE_UTXO_COMMITMENTS, NODE_BAN_LIST_SHARING, NODE_FIBRE, NODE_DANDELION, NODE_PACKAGE_RELAY

Validation Rules

• Size Limits: Block, transaction, and script size limits
• Feature Flags: SegWit, Taproot, RBF support
• Fee Rules: Minimum and maximum fee rates
• Protocol Context: Block height and network state
• DoS Protection: Protocol-level message size limits

Usage

Basic Protocol Engine

use blvm_protocol::{BitcoinProtocolEngine, ProtocolVersion};

// Create a mainnet protocol engine
let engine = BitcoinProtocolEngine::new(ProtocolVersion::BitcoinV1)?;

// Get network parameters
let params = engine.get_network_params();
println!("Network: {}", params.network_name);
println!("Port: {}", params.default_port);

// Check feature support
if engine.supports_feature("segwit") {
    println!("SegWit is supported");
}

Configuration

use blvm_protocol::{BitcoinProtocolEngine, ProtocolVersion, ProtocolConfig};

// Create protocol configuration
let mut config = ProtocolConfig::default();
config.service_flags.node_fibre = true;
config.commons.utxo_commitments = true;
config.validation.max_block_size = 4_000_000;

// Load from environment variables
let config = ProtocolConfig::from_env();

// Get service flags from configuration
let service_flags = config.get_service_flags();

Configuration Options

The protocol configuration system provides:

• Protocol Validation: Size limits (block, transaction, script), transaction count limits, locator hash limits
• Service Flags: Control which capabilities are advertised (NODE_NETWORK, NODE_WITNESS, Commons extensions)
• Protocol Features: Enable/disable SegWit, Taproot, RBF, CTV, Compact Blocks, Compact Filters
• Fee Rates: Minimum and maximum fee rate limits
• Compact Blocks: BIP152 configuration (version preference, index limits)
• Commons Extensions: UTXO commitments, filtered blocks, ban list sharing, filter preferences
• FIBRE: Fast Internet Bitcoin Relay Engine configuration

Configuration can be loaded from:

• Environment variables (BLVM_PROTOCOL_<SECTION>_<KEY>)
• Programmatic configuration (struct initialization)
• Configuration files (via serde serialization)

Service Flags

use blvm_protocol::service_flags::{self, standard, commons};

// Check service flags
let services = standard::NODE_NETWORK | standard::NODE_WITNESS | commons::NODE_FIBRE;
assert!(service_flags::has_flag(services, standard::NODE_NETWORK));
assert!(service_flags::has_flag(services, commons::NODE_FIBRE));

// Get all Commons flags
let commons_flags = service_flags::get_commons_flags();
assert!(service_flags::has_flag(commons_flags, commons::NODE_FIBRE));
assert!(service_flags::has_flag(commons_flags, commons::NODE_BAN_LIST_SHARING));

Network Message Processing

use blvm_protocol::network::{process_network_message, NetworkMessage, PeerState};
use blvm_protocol::BitcoinProtocolEngine;

let engine = BitcoinProtocolEngine::new(ProtocolVersion::BitcoinV1)?;
let mut peer_state = PeerState::new();

// Process a version message
let version_msg = NetworkMessage::Version(/* ... */);
let response = process_network_message(
    &engine,
    &version_msg,
    &mut peer_state,
    None,
    None,
    None,
)?;

Commons Protocol Extensions

use blvm_protocol::commons::{GetUTXOSetMessage, GetBanListMessage};
use blvm_protocol::network::NetworkMessage;

// Request UTXO set at specific height
let get_utxo = NetworkMessage::GetUTXOSet(GetUTXOSetMessage {
    height: 700000,
    block_hash: [/* ... */],
});

// Request ban list
let get_banlist = NetworkMessage::GetBanList(GetBanListMessage {
    request_id: 12345,
    min_score: Some(100),
});

BIP152 Compact Block Relay

use blvm_protocol::network::{NetworkMessage, SendCmpctMessage};

// Negotiate compact block relay
let sendcmpct = NetworkMessage::SendCmpct(SendCmpctMessage {
    version: 2,  // Compact block version
    prefer_cmpct: 1,  // Prefer compact blocks
});

Protocol-Specific Validation

use blvm_protocol::{BitcoinProtocolEngine, ProtocolVersion};

let engine = BitcoinProtocolEngine::new(ProtocolVersion::BitcoinV1)?;

// Validate block with protocol rules
let result = engine.validate_block(&block, &utxos, height)?;

// Validate transaction with protocol rules
let result = engine.validate_transaction(&tx)?;

Regtest Mode

use blvm_protocol::{BitcoinProtocolEngine, ProtocolVersion};

// Create regtest protocol engine
let engine = BitcoinProtocolEngine::new(ProtocolVersion::Regtest)?;

// Regtest mode has fast mining for testing
assert!(engine.supports_feature("fast_mining"));
assert!(engine.supports_feature("segwit"));

Protocol Evolution

Supported Protocol Features

• Basic transactions and proof-of-work
• Economic model and P2P networking
• SegWit and Taproot support
• RBF (Replace-By-Fee) support
• BIP152 Compact Block Relay
• BIP157 Block Filtering

Commons Extensions

• UTXO Commitments protocol
• Filtered block relay (spam filtering)
• Ban list sharing
• FIBRE support
• Dandelion++ privacy relay

Protocol Version Support

• Multiple protocol versions supported
• Enhanced scripting capabilities
• Privacy features
• Advanced economic models
• Protocol improvements

Modules

Core Modules

• network - P2P network message types and processing
• service_flags - Service flags for node capabilities
• commons - Commons-specific protocol extensions
• varint - Variable-length integer encoding
• economic - Economic parameters and calculations
• features - Feature activation and management
• validation - Protocol-specific validation rules

BIP Implementations

• bip157 - Client-side block filtering (BIP157)
• bip158 - Compact block filters (BIP158)
• address - Bech32/Bech32m address encoding (BIP173/350/351)
• payment - Payment protocol (BIP70)
• fibre - FIBRE protocol definitions

Testing

# Run all tests
cargo test

# Run network message tests
cargo test --test network_message_tests

# Run protocol limits tests
cargo test --test protocol_limits_tests

# Run with specific protocol version
cargo test --features testnet

# Run with UTXO commitments
cargo test --features utxo-commitments

Test suite includes:

• Network message processing tests
• Protocol limits tests (DoS protection)
• BIP152 compact block relay tests
• Commons-specific message tests (UTXO commitments, filtered blocks, ban list)
• Error handling tests (malformed messages, protocol mismatches)
• Edge case tests (maximum sizes, boundary conditions)
• Service flags tests
• Varint encoding tests
• Protocol integration tests
• Validation rules tests
• Network parameters tests
• Feature registry tests
• BIP implementation tests

Security Considerations

Production Use

• Mainnet: Full consensus rules and security
• Testnet: Same rules as mainnet, different parameters
• Regtest: Relaxed rules for testing only

Development Use

• Regtest: Safe for development and testing
• Fast Mining: Configurable difficulty for testing
• Isolated: No connection to real networks

DoS Protection

• Protocol-level message size limits
• Address count limits
• Inventory item limits
• Header count limits
• Transaction count limits

Dependencies

Monorepo vs crates.io: This repo’s Cargo.toml uses path dependencies for blvm-consensus when built next to sibling repos. For a crates.io-only dependency:

[dependencies]
blvm-protocol = "0.1.3"

blvm-consensus is pulled in transitively; ensure published versions match your crate’s Cargo.toml requirements.

All dependencies are pinned to exact versions for security. See Cargo.toml for the complete list.

Contributing

See CONTRIBUTING.md and the BTCDecoded Contribution Guide.