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Bitcoin and Kubernetes

This blog is the culmination of my efforts to run Bitcoin on Kubernetes. My professional work involves using Ansible to deploy applications to Kubernetes, and I was interested in using Ansible to deploy a containerized version of bitcoind on Kubernetes. I have been thinking a lot lately about how the Bitcoin network will evolve and change over time and I believe the future of Bitcoin applications will live on Kubernetes.

The Bitcoin Network

For awhile now I have been fascinated by the nature of Bitcoin's network. Bitcoin forms what is called a "Small World Network" as miners are heavily invested in maintaining connections to as many miners as possible. The miners in the network form a massive "supernode" where a user can realistically assume that if their transaction is propagated to a miner that is part of this "supernode" then the transaction will be successful and confirmed. This is the foundation for 0-confirmation security in Bitcoin.

But as Bitcoin grows, not all "nodes" in the network need to be miners. In fact, the next layer of nodes are heavily incentivized to form dense connections with mining nodes (and maybe even smart contracts) in order to maintain zero-confirmation security in the network and providing API interfaces for clients/users to interact with the highly-connected first layer.

This has been recently discussed with the release of nChain's Metanet project which intends to replace the internet with a value-network that is built entirely on the Bitcoin blockchain. The idea is that "Merchant nodes" are nodes that expose useful APIs for developers and users that will maintain high connectivity (due to economic incentive) to the densely connected miner nodes.

For enterprise to adopt Bitcoin, we must adapt to the existing DevOps model that has enabled enterprise to grow and evolve at the rate that only Open Source Software can provide. As the DevOps world moves to container orchestration inside of Kubernetes, it is only natural that Bitcoin evolves using the same infrastructure.

What is Kubernetes?

In layman's terms, Kubernetes is a cloud-platform that allows big business to innovate and develop their applications faster and in a sustainable and scalable manner. Kubernetes helps to automate application deployments and provides tools that give enterprise more flexibility than a traditional Platform-as-a-Service system.

In even simpler terms for those who only care about Bitcoin, Kubernetes is a cloud system that power complex applications.

Look at the Kubernetes Capital One case study:

Capital One has applications that handle millions of transactions a day. Big-data decisioning—for fraud detection, credit approvals and beyond—is core to the business. To support the teams that build applications with those functions for the bank, the cloud team led by Senior Director Software Engineering John Swift embraced Kubernetes for its provisioning platform. "Kubernetes and its entire ecosystem are very strategic for us," says Swift. "We use Kubernetes as a substrate or an operating system, if you will. There’s a degree of affinity in our product development.

Businesses like Capital One can use Bitcoin to reduce operating costs and decrease settlement times. The technology is a no-brainer for them to adopt at scale and they will expect to be able to innovate on top of their existing infrastructure.

Bitcoin powered by Kubernetes

Object management inside of Kubernetes is declarative. This means that the user can simply say "I want a bitcoind service" to Kubernetes, and Kubernetes handles the magic behind the scenes to spin up the needed resources to allow the user to have a fully functioning Bitcoin node inside of their cluster.

Since interacting with the base layer of the network is cumbersome, I believe that Bitcoin development will evolve to a point where projects like BitDB provide an abstraction for developers to work in environments/languages they are familiar with. Just like how Kubernetes allows a developer who knows nothing about database configuration to say "Give me a database instance" and they receive an IP+Port that connects to the database, we can provide the same level of abstraction for Bitcoin.

Currently, BitDB provides a public API interface that will need to run on a cloud like Kubernetes in order to scale to meet demand. For cloud-native Bitcoin applications to thrive, we desperately need a microservice architecture for Bitcoin.

Microservice Architecture Needed

There is a project in development called TeraNode which is supposed to reinvent the Bitcoin node software into a microservice architecture. This is incredibly important moving forward as Metanet will be powered by Bitcoin nodes that are not "full nodes".

I have been a constant fighter against the "full node" disinformation that exists in Bitcoin. A "full node" in Bitcoin is a miner full-stop. Anyone who is not participating in the Proof-of-Work competition is NOT a "full node". However, it is certainly in a merchant's best-interest to maintain a connection to the network for monitoring it, yet they have no use for the mining software that exists inside of the client. The merchants are also at the mercy of miners as they are the ones solely responsible for producing blocks and maintaining the security of the network.

As Bitcoin scales, the use-cases and incentives for running a node in the network will expand. A basic example of this would be providing a token authentication service that developers can be the consumer of. Currently, Google provides developers with a basic token service exposed via a REST API. Google could rewrite the token service to use the underlying security of the blockchain to provide an even better service and actually monetize the service itself. For Google to do this, it does not need all of the features the client currently supports. Ideally Google asks for a specific component of the client software declaratively and their application can just plug and play.

As a developer, I am not interested in validating every block in the network everytime I spin up a Bitcoin client... I simply want to be able to query the network and expose data to my service trusting that the network is controlled by honest hashrate. While there are some projects that allow a user to do this, a true SPV client doesn't exist and I would prefer to see all of this software under a single project source that is tried and tested much like the Linux Kernel.

We need to follow the Unix philosophy of breaking out the Bitcoin client software into components that "do one thing and do it well".

Running Bitcoin inside of Kubernetes

NOTE: All of the bitcoind deployments referenced below refer to the Bitcoin SV client.

Operators allow a developer to package, deploy, and manage a Kubernetes application.

I have previously written a blog post about creating a Kubernetes Operator that deploys a containerized bitcoind service. I have a maintained version of what I'm calling the Bitcoin Operator here. This operator allows anyone to deploy an RPC-enabled bitcoind service that exposes some information at the Kubernetes resource level so that other applications running on Kubernetes can automate infrastructure rollouts depending on the status of the Bitcoin Operator.

The Bitcoin Operator

To learn more about running the Bitcoin Operator, see my Bitcoin Operator blog. The Bitcoin Operator allows a developer to easily run Bitcoin inside of Kubernetes.

Since the status of the Bitcoin instance is constantly monitored and updated by the operator, this allows for an application developer to automate deployments/infrastructure around the state of the Bitcoin network. An example of this is monitoring whether or not the node is in sync to determine when a chain split has occurred and the application knows it cannot rely purely on SPV for stability.

As we move towards a microservice architecture, a lightweight pod that monitors the network can spin up resources on demand. A good example of this is when a new block is found, it triggers the creation of a new Kubernetes resource that automatically spins up both a block validator pod and a new mining pod that works off the previous block header.

This attempt was just a proof of concept as I do not believe it is feasible for application developers to run a "full node" inside of Kubernetes unless they are running a cluster on mining hardware. The deployment also requires a beefy cluster that can handle the entire blockchain sync as well as enough CPU cores to validate the blocks.


As more and more businesses choose a hybrid-cloud deployment model for their applications, Bitcoin cannot be an exception. For Bitcoin to scale to meet enterprise business needs then we must create better software that can be consumed for big business use cases. The growth and scaling of Bitcoin must force us to meet this problem head-on with solutions such as TeraNode that allow big business to plug Bitcoin into their existing infrastructure.

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