The Etherpad Wiki has docs on changesets and Etherpad Operational Transforms documentation, to review the code you want the source code for the Changeset library.
It's worth noting that Etherpad uses the same javascript code server and client side for operational transforms.
Should you have any further questions perhaps ask them on the Etherpad developers mailing list so you hit the correct audience.
Disclaimer and for posterity: I'm the founder of the Etherpad Foundation, a not for profit with a goal of supporting the Etherpad software and community.