Author: Casey Rodarmor 2022-02-23 07:10:58
Published on: 2022-02-23T07:10:58+00:00
The conversation discusses how Bitcoin assigns ordinal numbers to each Satoshi created and how these numbers are determined when BTC is transferred to another UTXO. The system uses a first-in-first-out algorithm, with the first ordinal number of the first input becoming the first ordinal number of the first output. While a full index can be expensive, it only needs to track contiguous ordinal ranges, which scales with the number of outputs - all outputs, not just unspent outputs - since an output might split an ordinal range. When Bitcoin is sent to another UTXO, the first-in-first-out algorithm splits the ordinals up, with 0 to 99,999,999 assigned to the first output and 100,000,000 to 499,999,999 assigned to the second output, less any fees.
Updated on: 2023-06-15T17:10:49.238113+00:00