Bitcoin Coin Selection with Leverage

TL;DR

This paper introduces a novel Bitcoin coin selection algorithm called 'coin selection with leverage' that offers improved cost savings and customizable parameters, serving as a flexible replacement for traditional knapsack-based methods.

Contribution

The paper presents a new coin selection algorithm with tunable parameters that enhances cost efficiency over standard approaches in Bitcoin transactions.

Findings

Achieves better cost savings than standard methods

Provides customizable parameters for different user goals

Fits seamlessly as a replacement in existing coin selection procedures

Abstract

We present a new Bitcoin coin selection algorithm, "coin selection with leverage", which aims to improve upon cost savings than that of standard knapsack like approaches. Parameters to the new algorithm are available to be tuned at the users discretion to address other goals of coin selection. Our approach naturally fits as a replacement for the standard knapsack ingredient of full coin selection procedures.