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Running a Private Bitcoin Signet Node via Tor

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A developer participating in the ₿OSS (Bitcoin Open Source Software) 2026 challenge has detailed a method for running a Bitcoin Signet node entirely over Tor using Docker. This setup prioritizes privacy by masking the node's IP address, essential for those experimenting with Bitcoin's test network without exposing their identity or location to the public network.

The guide outlines specific Docker Compose configurations that link a Bitcoin Core container with a Tor proxy service. By routing traffic through Tor's SOCKS5 port, the node creates a hidden .onion address. This architecture allows developers to maintain a low profile while verifying blocks and testing transactions on the Signet network.

Using Signet provides a stable testing environment where developers can experiment without spending real funds. Combining this with Tor reinforces the cypherpunk ethos of privacy and decentralization. Successfully retrieving the node's network information confirms the setup works, revealing the proxy IP and the new .onion address.

This technical walkthrough serves as a practical exercise for developers looking to deepen their understanding of Bitcoin's networking layers. As the challenge progresses, participants are encouraged to explore various node configurations, balancing the need for accessible testing environments with the strong privacy measures advocated by the community.