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Coin selection should include checks to avoid creating ambiguous transaction history. #178

@evanlinjin

Description

@evanlinjin

Describe the bug

In summary:

  • Coin selection should not consider coins from transactions that are replacing other transactions.
  • Coin selection should not consider coins from transactions that have been replaced.

Additional context

From Bitcoin Core:

        // We should not consider coins from transactions that are replacing
        // other transactions.
        //
        // Example: There is a transaction A which is replaced by bumpfee
        // transaction B. In this case, we want to prevent creation of
        // a transaction B' which spends an output of B.
        //
        // Reason: If transaction A were initially confirmed, transactions B
        // and B' would no longer be valid, so the user would have to create
        // a new transaction C to replace B'. However, in the case of a
        // one-block reorg, transactions B' and C might BOTH be accepted,
        // when the user only wanted one of them. Specifically, there could
        // be a 1-block reorg away from the chain where transactions A and C
        // were accepted to another chain where B, B', and C were all
        // accepted.
        if (nDepth == 0 && wtx.mapValue.count("replaces_txid")) {
            safeTx = false;
        }


        // Similarly, we should not consider coins from transactions that
        // have been replaced. In the example above, we would want to prevent
        // creation of a transaction A' spending an output of A, because if
        // transaction B were initially confirmed, conflicting with A and
        // A', we wouldn't want to the user to create a transaction D
        // intending to replace A', but potentially resulting in a scenario
        // where A, A', and D could all be accepted (instead of just B and
        // D, or just A and A' like the user would want).
        if (nDepth == 0 && wtx.mapValue.count("replaced_by_txid")) {
            safeTx = false;
        }

https://github.com/bitcoin/bitcoin/blob/e7ca8afef62cec200024030272e81a4e3f011822/src/wallet/spend.cpp#L147-L176

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