The coin selection algorithm decides which data will come together after the users have processed and will be used in the process. We can explain this algorithm with the following example; Assume that we give 10 liras for a product of 8 liras, 2 liras is determined by coin selection algorithm and money returns. The earpiece may not seem very complicated, but the Bitcoin software is not yet fully optimized in this respect. Coin selection algorithm has a direct effect on transaction costs.
Bitcoin Core developers Andrew Chow said: '' Bitcoin Core's original coin selection algorithm needs to be restructured so that the transaction fees do not increase. At this point it is not very effective, and while trying to identify the transaction fees that have to be paid, we enter a strange loop. Developers are working on a new algorithm called 'BnB'. BnB will combine data more effectively and at least provide scaling and reduce transaction costs. However, other changes will be added to Bitcoin Core's most popular software add-on. In about a year Bitcoin Core version 17 will be available for use.
Bitcoin Parts The bitcoins that are sent in each transaction are made up of different bitcoin pieces. One bitcoin in our wallet does not consist of a single piece of data, but a lot of data come together and join together. 1 bitcoin can be 2 pieces or 12 pieces, each of which is called "unspent transaction outputs (UTXOs)", ie unspent process output. For example, 1 bitcoin in our wallet can be 0.3 BTC, 2 0.1 BTC, and 0.5 BTC. These pieces travel from bitcoin to the wallets as soon as they are first shredded and united. The coin selection algorithm decides which piece is to be selected and split and sent back to the wallet. Developers think this algorithm is inadequate. It is thought that the output to go back is unnecessary and it takes up a lot of space on the Blockchain. In addition, because of the constant division, very small pieces are formed, and reassembling these pieces places too much load.
The new algorithm will be focused on making BnB operations divide. The exact amount of Bitcoin to be sent will be determined exactly and the output will be selected accordingly. Meanwhile, the BnB tests have passed successfully and approximately 40% of the transactions have been done without making unnecessary parts. On the other hand, a BnB plug-in "random selection" is being developed. An unexpected result was obtained from the random selection; BnB works better than Bitcoin Core, which is currently used, even if random parts are selected. BnB has been working on algorithms and coin selection for years is a very sensitive issue for them. Any mistake can lead to global cataclysm, which can affect the entire digital money market and investors traded around the world. That's why the developers are very careful about this issue and the BnB is being reviewed from all directions.