Thankfully those two duplicated transactions were never spent when they first 
appeared. Because of that, I chose to not not add them to the UTXO at all when 
they first appear. When the duplicates appear they get added to the UTXO 
successfully because the earlier, conflicting versions are not present. That 
way you can carry on assuming that all transaction hashes are unique, and 
enforce that rule over the entire blockchain.

Date: Mon, 14 Jul 2014 13:18:22 +0200
From: m...@plan99.net
To: m...@ricmoo.com
CC: bitcoin-development@lists.sourceforge.net
Subject: Re: [Bitcoin-development] Self-dependency transaction question...

Conceptually all transactions in the block chain lie on a single timeline. The 
fact that we quantise that timeline into blocks is in many ways neither here 
nor there - it's still a strict line. 

What can happen and you must be aware of is duplicated transactions. Satoshi 
sort of assumed this could never happen because everything is hash based, but 
forgot that duplicating coinbases is possible and at one point this did happen. 
It was banned by a rule change afterwards but you still must be able to process 
the older parts of the chain that have this. There is a BIP that covers the new 
rule.



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