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Setting up a test environment with two LIT nodes

This tutorial will help you set up a test environment with two LIT nodes and a Bitcoin regtest on your computer.

Step 1: Install Bitcoin Core in Regtest mode

The first step is to download Bitcoin Core, and run it in regtest mode. This allows for easy (simulated) mining of new blocks, and does not make you dependant on obtaining official testnet coins.

Download Bitcoin Core and install it. Before running it, make a file called bitcoin.conf with the following contents:


and place it in the correct location depending on your operating system:

Platform Location
Linux $HOME/.bitcoin/
Windows %APPDATA%\Bitcoin
MacOS $HOME/Library/Application Support/Bitcoin/

Then, startup Bitcoin Core.

Step 2: Generate the first blocks

Bitcoin Core will start in regtest mode (you can see this in the window title). It will show you a progress indicator like this:

Since this is an empty blockchain right now, you need to generate some blocks to get it going. So go to Help > Debug Window, and then click the Console tab. Then type the command generate 200 and press enter:

If you go back to the main window, the progress indicator will be gone and we have 5000 BTC on our own regtest blockchain to spend.

Step 3: Install the LIT nodes

Now the blockchain is up, we can install the LIT nodes. Download the latest binaries for your platform from here and unpack them in a new folder. Create two subfolders in that folder too, called lit1 and lit2. Create a file called lit.conf with the following contents:


Copy the file to both folders (lit1 and lit2). Open the copy in the lit2 folder and change the autoListenPort to :2449, and rpcport to 8002.

Step 4: Starting the LIT nodes

Open two terminal or command-line windows (cmd.exe on Windows, xterm on Linux, Terminal on MacOS) and cd to the directory where you put the LIT assemblies. In the first window, type this command to start up the first LIT node:

(On Unix / MacOS:) ./lit --dir lit1

(On Windows:) lit.exe --dir lit1

When starting up LIT will ask you for a passphrase to protect your wallet. You can leave it empty in development/test scenarios but in general it's recommended to set a password.

Then, similarly for the first node, use the second terminal window to start the second node:

(On Unix / MacOS:) ./lit --dir lit2

(On Windows:) lit.exe --dir lit2

Step 5: Fund the LIT wallets

Now that the nodes are up, we should fund the wallets. Open another command line window, and go to the directory where you downloaded the binaries. We use the command line client lit-af. You can connect to the first LIT node using the following command:

(On Unix / MacOS:) ./lit-af

(On Windows:) lit-af.exe

Next, issue the ls command. You'll see your address printed out to the console:

lit-af# ls
entered command: ls
	Listening Ports:
Listening for connections on port(s) [:2448] with key ln1a9pp6jv4rgz0r7wh9tqcn89ndqv0mytr095tnp
0 bcrt1q0hv4tx4hwdcv3p6xnhcf40ellqvst6k4a69m75 (mrzP7h3AQyxhWqVBh7TYBVzVDiaAM8R2AY)
	Type: 257	Sync Height: 200	FeeRate: 80	Utxo: 0	WitConf: 0 Channel: 0

Then switch to your Bitcoin Core client and pay the address (in this case bcrt1q0hv4tx4hwdcv3p6xnhcf40ellqvst6k4a69m75) 10 BTC.

Next, use the debug console to generate another block (use the command generate 1, we don't need 200 blocks this time).

When you issue the ls command again in lit-af you'll see that there's a Txo and a balance (behind WitConf):

lit-af# ls
entered command: ls
0 0a5ac3215c4a977ff104ae9c22569fb85fb310a4fde8dd06a0e68bff3fba5a59;0 h:201 amt:1000000000 /44'/257'/0'/0'/0' regtest
	Listening Ports:
Listening for connections on port(s) [:2448] with key ln1a9pp6jv4rgz0r7wh9tqcn89ndqv0mytr095tnp
0 bcrt1q0hv4tx4hwdcv3p6xnhcf40ellqvst6k4a69m75 (mrzP7h3AQyxhWqVBh7TYBVzVDiaAM8R2AY)
	Type: 257	Sync Height: 201	FeeRate: 80	Utxo: 1000000000	WitConf: 1000000000 Channel: 0

Repeat the funding steps for the second node, only use an extra parameter to lit-af to connect to it (since it's running on another port):

(On Unix / MacOS:) ./lit-af -p 8002

(On Windows:) lit-af.exe -p 8002

Step 6: Connect the nodes together

In order for the nodes to connect to each other, you need to find out the address of the first node, and then instruct the second node to connect. Connections are bi-directional, so they don't both need to connect to each other.

First, find out the address on the first node by issuing the ls command again. You will see something like this:

Listening Ports:
Listening for connections on port(s) [:2448] with key ln1kj56x2dl6c58waen2hmkfnh8u7w0n0hgmdzsna

The key ln1.... is the LIT address for this node. Then, in the lit-af console for the second node, enter this command:

con ln1kj56x2dl6c58waen2hmkfnh8u7w0n0hgmdzsna@localhost:2448

The console will respond with:

entered command: con ln1kj56x2dl6c58waen2hmkfnh8u7w0n0hgmdzsna@localhost:2448
connected to peer ln1kj56x2dl6c58waen2hmkfnh8u7w0n0hgmdzsna@localhost:2448

The nodes are now connected together.

Next steps

Now that you have a set up with two LIT nodes, you can continue with some interesting things, we cover in follow-up tutorials:

  • Form and use payment channels
  • [Executing a Discreet Log Contract using LIT-AF] (