“Coin Selection” Update Will Lower Bitcoin Transaction Fees

bitcoin coin selection update

“Coin selection”, the algorithm that decides which pieces of data connect together to create a Bitcoin transaction, is about to receive a major update, according to Coindesk.

Andrew Chow, a Bitcoin Core contributor talked about the matter in an interview with Coindesk,

“Bitcoin Core’s original coin selection algorithm actually needs a lot of reworking, especially with regards to transaction fees. It’s inefficient and it ends up doing a weird loop to try to guess the amount of transaction fees that are needed.”

Chow talked about the transparency that the algorithm could bring to the Bitcoin network:

“This will let us tidy up the coin selection code a lot and actually make it possible for one person to understand exactly what the coin selection algorithm is doing.”

“Transactions where an exact match was found, will generally be smaller than ones where there is change, so this will also save on transaction fees for the user and free up a few more bytes of block space to fit in other transactions,” Chow said.

 

 

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