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Due to complete lack of documentation on the subject, how would the pseucode for creating a transaction look using the following functions: createrawtransaction signrawtransaction and sendrawtransaction.

I receive the user transaction for incoming coins on IncomingTxID, when I create a raw transction I want to include at least some of those coins so if they won't confirm, neither will his payout.

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I am assuming you want to accomplish something akin to what SatoshiDice does. Here is how it can be done, using API calls with the Bitcoin-Qt/bitcoind client:

  1. listunspent - you get the list of all unspent transactions

  2. You determine which ones you want to spend

  3. You use createrawtransaction to create your inputs / outputs, taking txid and vout from the list of transactions that you have that are playing, as well as a list of transactions that constitute a "money supply" for you.

  4. Use signrawtransaction to sign the created transaction

  5. Use sendrawtransaction to send the signed transaction

That should be pretty much it. I have implemented some of that code myself and it is pretty easy once you get a hang of it all.

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    One bit of caution -- in the raw transaction, any inputs used that are not fully spent go to the miner. So be very careful when composing raw transactions. – Stephen Gornick Mar 18 '13 at 17:49
  • How about fee calculation? – Shamoon Jul 29 '13 at 14:12
  • @Shamoon bitcoinfees.com - you base them on the number of inputs and outputs. – ThePiachu Jul 29 '13 at 15:26
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A good way to see this (and also a non-automated method to do this) is available through BrainWallet:

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    One bit of caution -- in the raw transaction, any inputs used that are not fully spent go to the miner. So be very careful when composing raw transactions. – Stephen Gornick Mar 18 '13 at 17:50

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