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An efficient algorithm for multi-address transactions in a deterministic wallet

approx by approx
December 21, 2023
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I am developing my Bitcoin wallet (testnet) on Python using the Cryptos library. I started integrating support for deterministic wallets and mnemonic words. Now I have enabled users to generate addresses, addresses and private keys I store in an encrypted sqlite3 database file, addresses and public keys in a simple sqlite3 file.

How can an algorithm for generating a transaction with multiple inputs be effectively implemented? The library has built-in functions such as unspent (show UTXO for the address). I understand that I will have to loop through utxo and then select private keys for signing, but is there a more efficient way?



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