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lesson // bitcoin

Payment Processor API

Accept invoices, track confirmations, and handle payment webhooks.

advanced2 weeksproject // payment-processor

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Learning objectives

  • Create BIP-21 payment requests with unique addresses or amounts
  • Detect payments and confirmation thresholds
  • Emit signed webhooks to merchants

study // plan

Lessons are primers. Depth comes from required reading, interactive labs, reflection, and a hands-on check with evidence — the BOSS study pattern.

Research on Bitcoin Search

Required reading

  • bipBIP-21 URI scheme

Reflection prompts

  1. Explain Payment Processor API to a teammate without jargon — what problem does it solve?
  2. What would break in production if you misunderstood Payment Processor API?
  3. Which BIP, book chapter, or Core doc is authoritative here, and what did you verify?

Lab // Project milestone evidence

For Payment Processor API, complete the linked project spec happy path on regtest/Polar and capture demo evidence before marking the lesson complete.

evidence required

  • ·Link to public repo or branch
  • ·Commands or screenshots proving the happy path
  • ·Short note of one failure case you tested

Merchants need idempotent invoices, confirmation policies, and reliable callbacks. This project is the on-chain cousin of a Lightning POS.

Build challenge

API endpoints to:

  1. Create invoice (amount, expiry, address)
  2. Query invoice status
  3. Register webhook URL
  4. Mark paid after N confirmations

Loading diagram…

Invoice creation, detection, confirmation, webhook.

Under/over payment

Define policy for wrong amounts and late payments. Document it in the API.

Next steps

Enter open source: find a good first issue in a Bitcoin repository.

further reading

  • articleBitcoin Optech: Payment tracking
  • bookMastering Bitcoin

    Ch. 6: Transactions

build // challenge

project // payment-processor

Apply what you learned in a focused build session. Ship something small, test it on regtest, and document your approach before moving on.

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