From 69791af92cc5ac55870dac5f2028aedff471b32a Mon Sep 17 00:00:00 2001
From: Kris Nuttycombe <kris@nutty.land>
Date: Thu, 13 Oct 2022 20:20:46 -0600
Subject: [PATCH] Mark our utxos spent when we detect them as inputs to a
 transaction.

This modifies `decrypt_and_store_transaction` to check for inputs
to a transaction being decrypted that correspond to utxos known
to our wallet. For each such UTXO found, it is marked spent.
---
 zcash_client_backend/src/data_api/wallet.rs | 18 +++++++-----------
 zcash_client_sqlite/src/lib.rs              |  8 +++++++-
 2 files changed, 14 insertions(+), 12 deletions(-)

diff --git a/zcash_client_backend/src/data_api/wallet.rs b/zcash_client_backend/src/data_api/wallet.rs
index 226fa85b7..4c1ab4312 100644
--- a/zcash_client_backend/src/data_api/wallet.rs
+++ b/zcash_client_backend/src/data_api/wallet.rs
@@ -10,9 +10,6 @@ use zcash_primitives::{
     },
 };
 
-#[cfg(feature = "transparent-inputs")]
-use zcash_primitives::{legacy::keys::IncomingViewingKey, sapling::keys::OutgoingViewingKey};
-
 use crate::{
     address::RecipientAddress,
     data_api::{
@@ -25,6 +22,9 @@ use crate::{
     zip321::{Payment, TransactionRequest},
 };
 
+#[cfg(feature = "transparent-inputs")]
+use zcash_primitives::{legacy::keys::IncomingViewingKey, sapling::keys::OutgoingViewingKey};
+
 /// Scans a [`Transaction`] for any information that can be decrypted by the accounts in
 /// the wallet, and saves it to the wallet.
 pub fn decrypt_and_store_transaction<N, E, P, D>(
@@ -50,14 +50,10 @@ where
         .or_else(|| params.activation_height(NetworkUpgrade::Sapling))
         .ok_or(Error::SaplingNotActive)?;
 
-    let sapling_outputs = decrypt_transaction(params, height, tx, &ufvks);
-
-    if !(sapling_outputs.is_empty() && tx.transparent_bundle().iter().all(|b| b.vout.is_empty())) {
-        data.store_decrypted_tx(&DecryptedTransaction {
-            tx,
-            sapling_outputs: &sapling_outputs,
-        })?;
-    }
+    data.store_decrypted_tx(&DecryptedTransaction {
+        tx,
+        sapling_outputs: &decrypt_transaction(params, height, tx, &ufvks),
+    })?;
 
     Ok(())
 }
diff --git a/zcash_client_sqlite/src/lib.rs b/zcash_client_sqlite/src/lib.rs
index 21369bb95..afb75c73f 100644
--- a/zcash_client_sqlite/src/lib.rs
+++ b/zcash_client_sqlite/src/lib.rs
@@ -538,7 +538,6 @@ impl<'a, P: consensus::Parameters> WalletWrite for DataConnStmtCache<'a, P> {
         &mut self,
         d_tx: &DecryptedTransaction,
     ) -> Result<Self::TxRef, Self::Error> {
-        let nullifiers = self.wallet_db.get_all_nullifiers()?;
         self.transactionally(|up| {
             let tx_ref = wallet::put_tx_data(up, d_tx.tx, None, None)?;
 
@@ -579,8 +578,15 @@ impl<'a, P: consensus::Parameters> WalletWrite for DataConnStmtCache<'a, P> {
                 }
             }
 
+            // If any of the utxos spent in the transaction are ours, mark them as spent.
+            #[cfg(feature = "transparent-inputs")]
+            for txin in d_tx.tx.transparent_bundle().iter().flat_map(|b| b.vin.iter()) {
+                wallet::mark_transparent_utxo_spent(up, tx_ref, &txin.prevout)?;
+            }
+
             // If we have some transparent outputs:
             if !d_tx.tx.transparent_bundle().iter().any(|b| b.vout.is_empty()) {
+                let nullifiers = self.wallet_db.get_all_nullifiers()?;
                 // If the transaction contains shielded spends from our wallet, we will store z->t
                 // transactions we observe in the same way they would be stored by
                 // create_spend_to_address.