Bitcoin central order book

This article summarizes my first thoughts about the correct way a Bitcoin client should enable its operator to issue transactions. It is based on my reflexion as well as my experience in broadcasting dozens of hand-crafted transactions for which the bitcoin central order book-core built-in wallet repeatedly demonstrated its ineptitude. As it currently stands, the wallet is an embedded part of the reference implementation.

The job of the node is to connect to others via the Internet, and to exchange information with them. The job of the wallet is to prevent others from connecting via the Internet, which makes the tension quite evident. The wallet, which uses the previous pieces to create transactions, sign and broadcast them. Query the UTXO for unspent outputs given a set of addresses.

While the latter doesn’t present much implementation challenges, the former is a whole different story, depending on the particular way it is implemented. Obviously this means the transaction history for addresses can’t be directly queried from the node without a full blockchain rescan. Whatever the approach, the node simply has to output UTXOs, and receive signed transactions as input for broadcast. To be continued, comments more than welcome ! Unlike PRB, which somehow thinks whatever’s already in your mempool has precedence over what you’re explicitly telling it to swallow.

Long story short I ended up opening a short for 20 BTC around 749 EUR per. My lack of faith, disturbing as it was, ended up promptly rewarded with a well-deserved beating. After some additional servings of the same flavour of fail I figured that ending the blood-bath was well overdue. What the fuck did it even mean to not have enough margin to close a position? A second attempt yielded the very same result.