• A dedicated computer
• Ubuntu Server

1- Installing Bitcoin Core

This section will be done remotely from another computer by connecting to your Node using SSH. Please follow previous Chapter to make sure your hardware is adequate, and you have followed Ubuntu Server installation.

***First of all, we will validate that the installation was done properly and that the Ubuntu installation was NOT setup as a virtual machine **

df -h

Looking for updates

sudo apt update

Updating

sudo apt upgrade

Lets start by creating a “downloads” folder

mkdir downloads

***Go in the downloads folder

cd downloads

It is now important to understand what you are about to do. There are different ways to install Bitcoin Core. My preferred way is to download the release from Bitcoin Core here https://bitcoincore.org/en/download/
and do the GPG Key verification with the key list here https://github.com/bitcoin/bitcoin/blob/master/contrib/verify-commits/trusted-keys on Github.

Download the files from the Bitcoin Core website

wget https://bitcoincore.org/bin/bitcoin-core-24.0.1/bitcoin-24.0.1-x86_64-linux-gnu.tar.gz

wget https://bitcoincore.org/bin/bitcoin-core-24.0.1/SHA256SUMS

wget https://bitcoincore.org/bin/bitcoin-core-24.0.1/SHA256SUMS.asc

Validate that the release file is listed in the checksums file

sha256sum --ignore-missing --check SHA256SUMS

Use GPG to load keys locally from individuals found on the Github site
Ignore any warning and failures, but you must be sure that the lists “OK” after the name of the release file downloaded

Use GPG to load keys locally from individuals found on the Github site

gpg --keyserver hkps://keys.openpgp.org --recv-keys E777299FC265DD04793070EB944D35F9AC3DB76A

gpg --keyserver hkps://keys.openpgp.org --recv-keys D1DBF2C4B96F2DEBF4C16654410108112E7EA81F

Verify that the checksum file is verified

gpg --verify SHA256SUMS.asc

You should receive a “Good signature” beside the name associated to the key

Extract the tar file. It will create a folder called bitcoin-24.0.1 so it is important that you call it in the next command line.

tar xzf bitcoin-24.0.1-x86_64-linux-gnu.tar.gz

Install the content in the following directory. It is IMPORTANT that you write the correct folder name based on your release number. If you have installed the release 25.0, the folder name has to be bitcoin-25.0

sudo install -m 0755 -o root -g root -t /usr/local/bin bitcoin-24.0.1/bin/*

Cross your fingers and launch Bitcoin Core

bitcoind -daemon

***Get blockchain info to see which block your node is at

bitcoin-cli getblockchaininfo

Validate your node is connected to how many peers

bitcoin-cli getconnectioncount

***If you want to follow the log of your node synchronization, you should open secondary Terminal window and write the following command

tail -f .bitcoin/debug.log

2. Configuring Bitcoin Core

While the blockchain is synchronizing, you can start the configuration. In order to be fully synchronized, it will take approximately 18 hours. I found a great tutorial on youtube here: https://www.youtube.com/watch?v=fx_mLXISrfM

Open a new therminal window and go to the /.bitcoin folder

cd /.bitcoin

*** We need to create a new configuration file***

nano bitcoin.conf

Paste de following text in the bitcoin.conf file

server=1
txindex=1
daemon=1
rpcport=8332
rpcbind=0.0.0.0
rpcallowip=127.0.0.1
rpcallowip=10.0.0.0/8
rpcallowip=172.0.0.0/8
rpcallowip=192.0.0.0/8
zmqpubrawblock=tcp://0.0.0.0:28332
zmqpubrawtx=tcp://0.0.0.0:28333
zmqpubhashblock=tcp://0.0.0.0:28334
whitelist=127.0.0.1
rpcauth="username":[output of rpcauth.py]

Keep this terminal window open and go back to the main window

We will create a username and password for the RPC Authentification of the bitcoin.conf file we have created in the other terminal window and modify it

In the original terminal window, be sure you are in your “downloads” folder

cd downloads

*** In order to add a "username" and "password" to access to your node, go to Github.com/bitcoin/bitcoin and search for rpcauth.py. Go to the raw file and copy the link***

wget https://github.com/bitcoin/bitcoin/blob/master/share/rpcauth/rpcauth.py

Make the file executable
chmod +x rpcauth.py

Execute the file with a "username" & "password" at the end of the command line
./rpcauth.py "username" "password"

Copy the string and paste it in the configuration file of the auxiliary termina window

Modify the "username" and "password" in the bitcon.conf file

#Output for your username and password
rpcauth="username":[output of rpcauth.py]

CTRL+X and save Yes

Restart your node
Bitcoin-cli stop
Bitcoind

3.Creating the service file for automatic boot on start-up

*** Go back to Github.com/bitcoin/bitcoin and search for .service file. https://raw.githubusercontent.com/bitcoin/bitcoin/663f6cd9ddadeec30b27ec12f0f5ed49f3146cc9/contrib/init/bitcoind.service***

Important note: The new service file does not work properly. The link above is for the service file from 2021

Download the .service file in your systemd folder
cd /etc/systemd/system

sudo wget https://raw.githubusercontent.com/bitcoin/bitcoin/663f6cd9ddadeec30b27ec12f0f5ed49f3146cc9/contrib/init/bitcoind.service

sudo nano bitcoind.service

Change the file

In the [service] section, make the following changes:

• Make sure that the “ExecStart” has the right path for the folder “bitcoind” on the same line as “daemonwait” (you can verify the path in another terminal with the command “whereis bitcoind”)
• you need to remove the “wait” in -daemonwait to have only -daemon
• Make sure that the bitcoin.conf file has the right path. 
• Change also the path for the datadir.
• Put a # in front of ExecStartPre=
• Change “user” and “group” for the actual user of the server instead of Bitcoin and Bitcoin
• Put a # in front of ProtectHome

Press CTRL + X to save it, Y, enter

Shutdown Bitcoin
bitcoin-cli stop

Activate the new service file
sudo systemctl enable bitcoind
sudo systemctl start bitcoind

Validate the status
sudo systemctl status bitcoind

4. Enable TOR

Go back to home directory
sudo apt install tor

Validate that TOR has been activated
sudo systemctl status tor

Edit TOR rc file
sudo nano /etc/tor/torrc

Go all the way to bottom and enter 3 lines
ControlPort 9051
CookieAuthentication 1
CookieAuthFileGroupReadable 1

CTRL-X, Save

Restart Tor
sudo systemctl restart tor

sudo usermod -a -G debian-tor "username"

Modify bitcoin.conf to add TOR lines
nano .bitcoin/bitcoin.conf

Add the following lines at the end of the file:

proxy=127.0.0.1:9050
listen=1 b
bind=127.0.0.1
onlynet=onion
addnode=ty5nq4ua4v47jmebyib7wtk6b25exd735twap6g3rckbfhvlzvrkdhid.onion:8333

CTRL+X, Y

Reboot your node
sudo reboot

Et voila!

Prerequisites

1. Create a Ubuntu Bootable Stick

Installing Ubuntu Server

1. Connect your device up with a keyboard/mouse, ethernet cable, screen and with the boot USB inserted into the device but still powered off.
2. With the USB inserted, turn on your device. If it brings you to a Ubuntu screen then great move on to step 4, if not carry out the next step.
3. If the device does not boot to a Ubuntu screen with the USB plugged in, we need to tell it to boot from a USB rather than the internal hard drive. Shut the device. Turn it back on and hold “ALT” key once the computer is starting to boot. The “ALT” key is replacing the “OPTION” key on a Mac. Please select UEFI in the menu in order to reboot with the Boot stick.
4. You will arrive on the Ubuntu Server.
5. Next choose your desired language.
6. Select to update to new installer if any updates available.
7. Allow it to detect or select your regional keyboard layout.
8. Choose the basic installation, do not select any additional options.
9. At the next stage it will like you to connect to the internet, the WiFi will not work at this stage so you will need to plug in via ethernet if not already done.
10. Once connected to the internet an IP address is shown on the screen, write it down and press Done
11. Unless you’re using a proxy on the next screen (Configure Proxy) press Done.
12. Leave the default Mirror address by pressing Done. 
13. At the next screen Guided Storage Configuration you can select the disk setup, Uncheck “Set up this disk as a LVM” since you want to use the whole disk as your node and press Done.
14. The next screen will confirm the file system summary click Done.
15. Ensure you have opted for the correct disk and confirm action at the pop-up screen.
16. At the profile screen, you can provide your name, the servers name and provide the username.
17. It will ask you if you want to enable Ubuntu Pro, select skip for now.
18. At the SSH Setup screen, select to install OpenSSH server and select Done.
19. We did not opt to install any additional features at the next screen (Featured Server Snaps) this is to keep the Umbrel OS very lightweight click Done.
20. Once the install completes, the screen will show you (Install Complete!).
21. Select Reboot now.
22. Remove the USB drive when it tells you and press Enter.

This should now complete the Ubuntu installation stage, next we need to SSH to the server.

Connecting to the Ubuntu Server using SSH

Now that your Ubuntu Server is online, the rest of the operation will be done via another computer with SSH connection using Terminal. From now on, I will start the comments with # so they will not be confused with commands to enter into Terminal.

To connect to your server, you will need to use the following command with the name of the server from step 16 and the IP address noted down in the step 10 from the previous section

ssh "server name"@"IP address"

You will be prompt to enter the password from step 16

"enter password"

Congratulation, you are now connected and ready to start installing your node applications!