[BIP Proposal] Limit ScriptPubkey Size >= 520 Bytes Consensus.

Brandon Black has proposed a soft fork in the Bitcoin protocol, aiming to declare the creation of outpoints with more than 520 bytes in the ScriptPubkey as consensus invalid after a certain block height. This proposal was influenced by data gathered according to BIP 0002 standards, revealing that among the analyzed outpoints, only a small fraction would be affected by this rule, highlighting an insignificant utilization of 'large' ScriptPubkeys over the past 15 years. The primary motivation behind this proposal is to mitigate potential risks without significant drawbacks, emphasizing the benefits such as enhancing network security against DoS attacks, streamlining the codebase, and potentially reducing UTXO set size, thereby addressing concerns related to scalability and performance.

The suggested change aims to reconcile discrepancies between consensus and relay policy while ensuring sufficient flexibility for future network requirements. It also seeks to limit the use of ScriptPubkey as a vehicle for large data payloads, which could simplify legacy script complexities without completely removing functionality. However, the proposal acknowledges potential objections, including speculative future needs that might arise from advancements like quantum computing or the possibility of users circumventing the restriction by creating multiple outpoints.

For further reference and detailed onchain data supporting this proposal, interested parties can visit PortlandHODL's GitHub repository. This initiative is part of an ongoing discussion within the Bitcoin development community, inviting feedback and considerations on the balance between innovation, security, and operational efficiency in the evolving landscape of blockchain technology.