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Why does the value range of outputs need to be restricted?

Bitcoin Stack Exchange

Bitcoin News / Bitcoin Stack Exchange 108 Views

In the 'tx messages' section for protocol rules we have

  1. Each output value, as well as the total, must be in legal money range
  1. For each input, if the referenced output does not exist (e.g. never existed or has already been spent), reject this transaction

If my understanding is correct, rule 4 will confirm 0 <= output, sum of outputs <= 21,000,000, and rule 12 is checking that each input is in the UTXO set. I am having a hard time seeing why rule 4 is necessary, it seems like other rules - such as rule 12 - would already invalidate a transaction that was not in legal range. No one could ever have > 21,000,000 bitcoin so there could never be utxos for more 21,000,000.

Also, where can I find the code for these checks in the source code.


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