By Nasser Saazi
Coin selection refers to the process of picking Unspent Transaction Outputs(UTXOs) from the wallet’s pool of 'unspent transaction outputs' to fund a transaction. During this process, it is important that the least cost is incurred in terms of fees, while maintaining maximum privacy. In this post I will take you through some of the solvers currently used in Bitcoin Core to select coins to be spent in transactions ,as well as their trade offs.
Goals of coin selection
- Funding a transaction. To raise sufficient funds to pay for the recipient outputs and fees of the transaction. This is the primary goal.
Nasser goes ahead to breakdown the goals of coin selection and how their selection is processed in Bitcoin core here https://medium.com/@nassersaazi/almost-everything-you-need-to-know-about-coin-selection-in-bitcoin-core-75b3814b90b3