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There are many utxos in each block and a huge number of possible subaddresses for a given wallet seed, so they cannot all be checked against eachother.

How is a wallet able to do this efficiently and correctly? Are there circumstances when a sub-address can be missed, eg for a huge wallet with more than 10,000 used sub-addresses, or a large gap between used addresses?

and related: is this mechanism documented somewhere?

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