Relax OP_RETURN standardness restrictions

The email delves into the complexities surrounding the handling of illicit data within the Bitcoin network, challenging the notion that encryption alone can address the underlying issues. It underscores the misconception that encryption can fully mitigate risks associated with the possession and transmission of illegal data, pointing out that it only partially addresses more superficial concerns such as evasion from antivirus scanners. This distinction emphasizes the inadequacy of encryption as a standalone solution for the broader challenges posed by illicit data on the blockchain.

Further discussion in the email highlights a proposed strategy aimed at making the publication of data on the Bitcoin network more costly, thereby discouraging the misuse of its infrastructure for storing arbitrary data. This approach builds on ideas previously outlined by Gregory Maxwell, focusing on keeping extraneous data out of the blockchain's unprunable sections. The conversation elaborates on the concept of "super prunability," suggesting that while certain data proofs can be made super prunable—meaning they can be discarded more readily than other types—this does not necessarily resolve the issue of high bandwidth channels being exploited for illicit purposes. The email expresses skepticism about the feasibility of completely eliminating these channels without significantly compromising Bitcoin's overall functionality.

Moreover, the email touches upon the economic aspects of data storage on the Bitcoin blockchain compared to conventional cloud storage solutions like Amazon S3. It argues that individuals who utilize blockchain for data storage are not particularly sensitive to price increases, as evidenced by their willingness to incur higher transaction fees during periods of network congestion. This insensitivity suggests that strategies aimed at making data publication more expensive might not effectively deter the practice. Additionally, the email points out that attempts to limit the capacity for data insertion could inadvertently increase the volume of such activities by making the blockchain space a more scarce resource.

In essence, the email presents a nuanced view of the challenges associated with managing illicit data and arbitrary data storage on the Bitcoin network. It critiques simplistic solutions like encryption and fee manipulation, advocating for a more comprehensive understanding of the economic incentives and technical limitations at play. The discussion underscores the need for a balanced approach that addresses both the immediate practicalities of data management and the long-term implications for the blockchain's integrity and functionality.