Relax OP_RETURN standardness restrictions

The discussion revolves around the significant concerns related to the OP_RETURN feature in Bitcoin, highlighting the historical context and implications of proposed changes. Initially, OP_RETURN was standardized with a limited size to minimize harmful data storage practices within Bitcoin's unspendable transaction outputs (UTXOs). This approach aimed to deter attackers from bloating the blockchain with unnecessary data, which had become a prevalent issue. For years, this measure effectively curtailed such practices, maintaining Bitcoin’s primary function as a currency rather than a file storage system.

However, the emergence of an exploit termed 'inscriptions' has raised substantial issues by allowing users to bypass the existing limitations on arbitrary data storage within Bitcoin transactions. This exploit not only circumvents the intended restrictions but also provides a significant cost advantage, offering a 75% discount on transaction fees for data insertion. The discussion points out the counterproductive nature of relaxing OP_RETURN size limits without addressing the underlying exploit, as it would likely lead to further abuse of the network for data storage purposes. The cost discrepancy between standard data storage methods and the exploitative 'inscriptions' method disincentivizes the use of OP_RETURN for its intended purposes, undermining the rationale for expanding its capacity.

Furthermore, the current state of the inscriptions exploit involves a method of chunking data that indirectly preserves some level of data obfuscation on the blockchain. Removing the size limit on OP_RETURN would eliminate this accidental safeguard, leading to direct and plaintext storage of arbitrary data on the blockchain. Such a change poses serious risks, including the potential for full node operators to inadvertently host and distribute illegal content or malware. This scenario highlights the broader consequences of altering the OP_RETURN functionality, extending beyond technical adjustments to impact the legal and operational integrity of individuals running Bitcoin nodes.

The communication emphasizes that the proposal to expand OP_RETURN capabilities fundamentally alters Bitcoin's nature and purpose, shifting it from a decentralized currency towards an arbitrary data storage system. This shift is presented as a deviation from the original vision and intent of Bitcoin's developers, posing existential threats to the cryptocurrency's value and functionality. The message concludes by urging developers to acknowledge the gravity of these decisions and their long-term effects on Bitcoin's ecosystem, advocating for a cautious approach that prioritizes the project's overall health and sustainability over accommodating specific exploits or use cases.