Create BTC Wallet

import { DynamicBtcWalletClient } from '@dynamic-labs-wallet/node-btc';
import { ThresholdSignatureScheme } from '@dynamic-labs-wallet/node';
import { BitcoinAddressType } from '@dynamic-labs-wallet/core';

// Create authenticated client
export const authenticatedBtcClient = async () => {
  const client = new DynamicBtcWalletClient({
    environmentId: process.env.DYNAMIC_ENVIRONMENT_ID!,
  });

  await client.authenticateApiToken(process.env.DYNAMIC_AUTH_TOKEN!);
  return client;
};

export const createBtcWallet = async ({
  thresholdSignatureScheme = ThresholdSignatureScheme.TWO_OF_TWO,
  addressType = BitcoinAddressType.NATIVE_SEGWIT,
  password,
  onError,
}: {
  thresholdSignatureScheme?: ThresholdSignatureScheme;
  addressType?: BitcoinAddressType;
  password?: string;
  onError?: (error: Error) => void;
}) => {
  const btcClient = await authenticatedBtcClient();

  const wallet = await btcClient.createWalletAccount({
    thresholdSignatureScheme,
    password,
    onError,
    backUpToDynamic: true,
    bitcoinConfig: {
      addressType,
    },
  });

  return {
    accountAddress: walletMetadata.accountAddress,
    publicKeyHex: publicKeyHex,
    rawPublicKey: wallet.rawPublicKey,
    externalServerKeyShares: wallet.externalServerKeyShares,
  };
};

// Usage example - Native SegWit wallet
const segwitWallet = await createBtcWallet({
  thresholdSignatureScheme: ThresholdSignatureScheme.TWO_OF_TWO,
  addressType: BitcoinAddressType.NATIVE_SEGWIT,
  password: 'your-secure-password',
  onError: (error: Error) => {
    console.error('BTC wallet creation error:', error);
  },
});

console.log('Native SegWit wallet created:', segwitWallet.accountAddress);
// Output: bc1q...

// Usage example - Taproot wallet
const taprootWallet = await createBtcWallet({
  addressType: BitcoinAddressType.TAPROOT,
});

console.log('Taproot wallet created:', taprootWallet.accountAddress);
// Output: bc1p...

try {
  const wallet = await createBtcWallet({
    thresholdSignatureScheme: ThresholdSignatureScheme.TWO_OF_TWO,
    addressType: BitcoinAddressType.NATIVE_SEGWIT,
    onError: (error: Error) => {
      console.error('Wallet creation error:', error);
    },
  });
  console.log('BTC wallet created successfully:', walletMetadata.accountAddress);
} catch (error) {
  if (error.message.includes('invalid session')) {
    console.error('Invalid session ID - please re-authenticate');
  } else {
    console.error('BTC wallet creation failed:', error.message);
  }
}

const wallet = await btcClient.createWalletAccount({
  thresholdSignatureScheme: ThresholdSignatureScheme.TWO_OF_TWO,
  backUpToDynamic: true,
  bitcoinConfig: {
    addressType: BitcoinAddressType.NATIVE_SEGWIT,
  },
});

// Store these securely in your database
const walletData = {
  accountAddress: walletMetadata.accountAddress,
  publicKeyHex: publicKeyHex,
  thresholdScheme: ThresholdSignatureScheme.TWO_OF_TWO,
  addressType: BitcoinAddressType.NATIVE_SEGWIT,
  chainName: 'BTC',
  createdAt: new Date().toISOString(),
  externalServerKeyShares: wallet.externalServerKeyShares,
};

// Never store externalServerKeyShares in plain text
// They should be encrypted and stored securely

const { accountAddress } = btcClient.deriveAccountAddress({
  rawPublicKey: wallet.rawPublicKey,
  addressType: BitcoinAddressType.NATIVE_SEGWIT,
});

console.log('Derived BTC address:', accountAddress); // e.g. bc1q...