Coin Selection Algorithms
summary
Explains concrete rules: compute an input’s effective value by subtracting its predictable input-fee (size × fee rate) from its nominal satoshi amount, use an exact match window sized by the cost-of-change (including a future spend cost—default consolidation rate 10 sat/B) to prefer changeless spends, and score candidates with a waste metric that sums opportunity cost and excess/change cost. Bitcoin Core first ships the approach in 0.17 (branch-and-bound) and compares multiple algorithms in 23.0, picking the lowest-waste result.
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chapters (14)
- 0:00Intro
- 3:07Naive Algorithm
- 4:16Effective Value
- 5:26Exact Match
- 6:26Exact Match Window
- 8:12Change Output
- 9:53Good
- 11:39Privacy
- 12:58Transaction Fees
- 13:40Opportunity Cost
- 14:52Waste Metric
- 16:18Bitcoin Core Waste Metric
- 17:23Summary
- 18:18Questions
