IMPLEMENTATION: Bitcoin Wallet Core Standards (HD + SegWit + Taproot + PSBT)

[ohotuowo-morgan]

DESCRIPTION

Implement core Bitcoin wallet functionality based on industry-standard BIPs to enable secure wallet creation, address support, and transaction handling.

This implementation should ensure full compatibility with current Bitcoin wallets and provide future scalability.

The following standards must be supported:

• BIP39 + BIP32 + BIP44 → Basic HD wallet with legacy addresses
• BIP84 + BIP173 → Add native SegWit support
• BIP49 → Add P2SH-wrapped SegWit
• BIP86 → Add Taproot support
• BIP21 → URI scheme support
• BIP174 → PSBT for advanced transaction handling

TASKS / STEPS

• Implement wallet creation logic entry point

• Generate mnemonic seed (BIP39)

• Convert mnemonic → seed → master key (BIP32)

• Derive wallet keys + addresses for:
  --Legacy (BIP44 / P2PKH)
  --Native SegWit (BIP84 / BIP173)
  --P2SH-wrapped SegWit (BIP49)
  --Taproot (BIP86)

• Implement bitcoin: URI scheme support (BIP21)

• Implement PSBT handling (BIP174)

• Store sensitive wallet data securely using react-native-encrypted-storage

• Use Testnet only during development

• Integrate logic with existing Wallet Creation UI
  Note: "if your have any issues on this pls do well to contact the community projects lead teams"

[ohotuowo-morgan]

Working on this issue