So far my understanding is that when you create an op_csv output the value entered before the OP_NOP3 is an arbitary number, lets say 10. This number can be interpreted as block based of time based depending on the nSequence value set when spending (according to bip-0068).
What I am confused about is the following, say my first transaction has a redeem script as follows
Does this mean that the spender, who sets the nSequence type flag (1<<22) to either on or off whilst creating the spend transaction, effectively has the ability to decide whether the 10 is interpreted as block based or time based?
It seems the granularity of the time based option is 512 seconds, so close to an average block time.