Relax OP_RETURN standardness restrictions

Initially, the standardness rules were established with the intention of discouraging the blockchain from being used as a data storage system, aiming to make data embedding slightly inconvenient while still allowing for an alternative that was less harmful than other methods. These rules include limiting transactions to no more than one OP_RETURN output, which must also be under 83 bytes. However, developers have creatively found ways around these limitations, as exemplified by the Citrea bridge named Clementine, which uses Taproot outputs to embed data.

This inventive approach underscores the challenges of enforcing restrictions meant to discourage certain practices within the Bitcoin network. The effectiveness of these measures has been called into question, as they have inadvertently encouraged less desirable behaviors without significantly deterring the storage of arbitrary data on the blockchain. In response to these challenges, there is a proposal to remove restrictions related to OP_RETURN outputs. The proposed changes include eliminating the limit on the size of scriptPubKey for OP_RETURN outputs as an initial step, followed by removing the limitation on the number of OP_RETURN outputs per transaction. This approach is aimed at ceasing the promotion of harmful practices within the network by adjusting the standardness rules to better accommodate the evolving needs of various cryptographic schemes and protocols utilizing the blockchain.

These discussions reflect the dynamic nature of blockchain technology development and highlight the need for continuous adaptation of the network's regulatory framework to support innovation. By reconsidering the limitations placed on OP_RETURN outputs, the Bitcoin development community is exploring ways to optimize the blockchain's functionality while maintaining its integrity and security. The dialogue emphasizes the importance of balancing the encouragement of technological advancements with the prevention of misuse, illustrating the complexities involved in managing a decentralized digital currency like Bitcoin.