Table of Contents

• Phase 1: The Backbone (Bitcoin Core v30.2)
  • 1. Installation
  • 2. Configuration for JoinMarket
• Phase 2: The Privacy Layer (Tor Onion Services)
• Phase 3: The Economic Solution (JoinMarket Guide)
  • 1. Installation
  • 2. Wallet Creation
  • 3. Understanding the Roles
  • 4. Advanced Features
• Total Privacy

The Sovereign Stack: Bitcoin, Tor, and JoinMarket #

True financial privacy isn't just a software feature; it's an economic solution to a surveillance problem. By combining Bitcoin Core v30.2, the Tor Network, and JoinMarket, we create a "Sovereign Stack" that breaks the deterministic links on the blockchain.

Phase 1: The Backbone (Bitcoin Core v30.2) #

Bitcoin Core is your source of truth. Running your own node ensures that you aren't leaking your XPUB or transaction history to third-party servers.

1. Installation #

On Debian/Ubuntu, download and verify the latest binaries:

1wget [https://bitcoincore.org/bin/bitcoin-core-30.2/bitcoin-30.2-x86_64-linux-gnu.tar.gz](https://bitcoincore.org/bin/bitcoin-core-30.2/bitcoin-30.2-x86_64-linux-gnu.tar.gz)
2tar -xzf bitcoin-30.2-x86_64-linux-gnu.tar.gz
3sudo install -m 0755 -o root -g root -t /usr/local/bin bitcoin-30.2/bin/*
4

2. Configuration for JoinMarket #

JoinMarket requires RPC access to your node. Edit your ~/.bitcoin/bitcoin.conf:

server=1
rpcuser=your_username
rpcpassword=your_secure_password
txindex=1  # Required for JoinMarket to track history
# Tor Configuration
proxy=127.0.0.1:9050
listen=1
bind=127.0.0.1

Phase 2: The Privacy Layer (Tor Onion Services) #

Routing your node and JoinMarket traffic through Tor masks your IP address, preventing "physical" de-anonymization.

1sudo apt install tor
2sudo systemctl enable tor
3sudo systemctl start tor
4

To allow JoinMarket to communicate with the "Trading Pit" (the market for liquidity), ensure your torrc allows SOCKS5 proxying on port 9050.

Phase 3: The Economic Solution (JoinMarket Guide) #

JoinMarket solves the "coordination problem" of CoinJoin by creating a market between Makers (liquidity providers) and Takers (privacy seekers).

1. Installation #

JoinMarket requires Python 3.8 to 3.13. We will use the automated quickstart:

1git clone [https://github.com/Joinmarket-Org/joinmarket-clientserver.git](https://github.com/Joinmarket-Org/joinmarket-clientserver.git)
2cd joinmarket-clientserver
3./install.sh
4

Follow the prompts. When finished, activate the virtual environment:

1source jmvenv/bin/activate
2cd scripts
3

2. Wallet Creation #

Generate a new BIP84 compatible wallet:

1python wallet-tool.py generate
2

Note: This will generate a 12-word recovery mnemonic. Keep this offline!

3. Understanding the Roles #

• The Maker (Passive Income): You provide liquidity to the market and receive a small fee for every CoinJoin you participate in.

• Command: python yield-generator-basic.py your_wallet.jmdat

• The Taker (Instant Privacy): You want to mix your coins now. You pay a small fee to the Makers to coordinate a transaction immediately.

• Command: python sendpayment.py -N 5 your_wallet.jmdat <amount> <address> (The -N 5 flag initiates a CoinJoin with 5 counterparties).

4. Advanced Features #

• Fidelity Bonds: To prevent Sybil attacks, Makers can "lock" coins to prove they are not a single entity trying to deanonymize the pool.
• PayJoin (BIP78): A way to pay merchants that makes the transaction look like a normal payment while actually breaking common ownership heuristics.

Total Privacy #

By the end of this setup, your stack is fully sovereign:

1. Bitcoin Core validates your coins.
2. Tor hides your location.
3. JoinMarket obfuscates your transaction history.

🎧 Listen to the Audio Deep-Dive on this stack