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This repository was archived by the owner on Oct 26, 2021. It is now read-only.
While this limits the count of state identifiers to 255, the byte 0xff can be reserved to indicate longer identifiers (as in UTF-8).
I like the spirit of this design but I need to point out that variable-byte-size encodings (like UTF8) work slighly different than you state.
The flag is the high-bit, not the value 0xff. Specifically the high bit indicates "there is another byte after this one".
Internally Bitcoin Core (and its derivatives) already use a variable byte width encoding that is different from the varint stuff and it might be useful to follow that design.
The main take-away here is that the line I quoted above would be corrected with something like:
While this limits the count of state identifiers to 255, the top bit can be reserved to indicate longer identifiers (as in UTF-8). This limits our current set of values to 127 until this encoding has been formalized