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TERM_DEF // TRANSACTION / SEQUENCE_NUMBER
SEQUENCE
NUMBER
Sequence Number. A per-input 32-bit field used originally for tx replacement; now signals RBF and encodes relative locktimes.

This page sits in the Transaction section — How money moves: inputs, outputs, fees, signatures, sighash flags, and the formats that wrap them. Read on for what it is, why it exists, how it works under the hood, and what to watch out for.
Sequence Number — at a glance
TRANSACTION
Sequence Number is part of the SEQUENCE / LOCKTIME sub-family of transaction-level concepts. A 4-byte field per input that controls relative timelocks (BIP-68/112) and replace-by-fee signalling (BIP-125). A per-input 32-bit field used originally for tx replacement; now signals RBF and encodes relative locktimes.
Why it exists
DESIGN
The sequence field was originally Satoshi's mechanism for transaction replacement — superseded by BIP-125. BIP-68 then re-purposed bits 0-15 for relative timelocks. Today the sequence field has THREE meanings depending on its value.
Mechanism
HOW IT WORKS
If sequence == 0xffffffff → finalised, no locktime, no RBF. If < 0xfffffffe → BIP-125 RBF-opt-in. If bit 31 is clear AND BIP-68 active (tx version ≥ 2) → bits 0-15 are a relative timelock in either blocks (bit 22 clear) or 512-second units (bit 22 set).
1. Wallet selects UTXOs whose total value covers the spend amount + estimated fee (coin selection). 2. Wallet builds the transaction body: version, inputs (each with prev txid + vout + sequence), outputs (each with value + scriptPubKey), locktime. 3. Wallet computes the sighash for each input (which parts of the tx the signature commits to — controlled by the SIGHASH flag). 4. Wallet signs each input with the right private key. Witness/scriptSig is populated with the resulting signatures + pubkeys. 5. Tx is broadcast to peers. Mempool propagation: tens of seconds globally. 6. A miner includes it in a block. Confirmation count grows by 1 per block; after ~6 the tx is effectively final.
Sequence Number — SEQUENCE / LOCKTIME
EXAMPLE
Sequence value (LE) Meaning 0xffffffff finalised; no locktime, RBF disabled 0xfffffffe nLockTime active; RBF disabled 0xfffffffd RBF enabled (BIP-125 opt-in) 0x00000010 relative timelock of 16 BLOCKS (BIP-68) 0x00400010 relative timelock of 16 × 512 SECONDS (bit 22 set) 0x80000000 bit 31 set → disables BIP-68 timelock semantics Always check: tx version AND sequence AND bit 31 to decode timelock meaning.
TRIPLE MEANING
Sequence simultaneously controls finalisation, RBF signalling, and relative-timelocks. Don't confuse the three interpretations.
ATOMIC
A transaction is either fully accepted into a block or fully rejected. There is no partial spend.
IMMUTABLE INPUTS
A UTXO can only ever be spent once. After that, it is permanently consumed.
NO BALANCES
Bitcoin tracks UTXOs, not balances. Your wallet computes a balance by summing the UTXOs it controls.
Things that catch people out
PITFALLS
  • address-reuse/">Address reuse degrades privacy — every reuse links more of your UTXOs together publicly. Modern wallets generate a fresh address per receive.
  • Fee estimation matters: under-pay and your tx sits in the mempool for hours; over-pay and you tip the miner more than necessary. Use a fee estimator.
  • "Change outputs" must go back to a fresh address you control. A missing output/">change output sends the difference to the miner as fee — a known footgun.
  • RBF (Replace-By-Fee) lets you re-broadcast a tx with a higher fee. Useful for stuck txs but means a 0-confirmation tx is never truly final.

TERMINOLOGY
Sequence Number
A per-input 32-bit field used originally for tx replacement; now signals RBF and encodes relative locktimes.
Transaction (Tx)
A signed payload spending one or more UTXOs and creating new ones; every state change in Bitcoin is a tx.
Raw Transaction
The hex-serialized bytes of a transaction, ready to broadcast or analyze.
Transaction ID (TXID)
HASH256 of a transaction's pre-witness serialization; used to reference outputs by (txid, vout).
wTXID (Witness TXID)
HASH256 of the full transaction including witness data; commits to signatures and used in the witness commitment.
Input
A reference to a previous output being spent, plus the data (scriptSig/witness) authorizing the spend.
Output
An (amount, scriptPubKey) pair created by a transaction; spendable later by a tx whose input references it.
UTXO (Unspent Transaction Output)
An output that hasn't been spent yet; your "balance" is the sum of UTXOs you can sign for.