Why does the described algorithm only decode transmitted blocks when the receiver has decoded all but one of the constituent blocks? For example, if the receiver has received the following 3 blocks:

  1. A ^ B ^ C
  2. A ^ B
  3. B ^ C

it can combine #1 and #2 to decode C, then combine C and #3 to decode B, then combine B and #2 to decode A.

The algorithm as described would in this situation cause the receiver to wait until it's received a single block, either A or B or C, before decoding anything. This strikes me as inefficient.

Edited to add: I think this is analogous to forward vs. backwards chaining: you can either start by combining single blocks with composite blocks to simplify them, or start by combining blocks whose component block lists differ by only a single block. Or you could apply both, which should get the greatest simplification with the smallest amount of input.