On (in)ability to embed data into Schnorr

The email from AdamISZ/waxwing to Peter touches on several nuanced aspects of blockchain technology, specifically focusing on the mechanics of private key usage and data storage within the unspent transaction output (UTXO) set. The discussion initially highlights a scenario where the private key's relevance emerges only after the funds' recovery by the owner in subsequent transactions. This point subtly addresses concerns regarding key leakage, although the sender admits a lack of imaginative scenarios where this might be particularly useful.

Furthermore, the conversation delves into the limitations faced by individuals or systems desiring to maintain data within the UTXO set indefinitely. The sender critiques the practicality of such an approach for those aiming to ensure data remains "immediately accessible" in the UTXO set, like depositing information into a sophisticated system accompanied by a data blob. The critique is grounded in the current output structure's inability to support this immediate accessibility, suggesting that any data intended for such purposes would, at best, be accessible only in the medium term.

This exchange sheds light on the ongoing discussions among developers about optimizing blockchain technology's capabilities while acknowledging existing limitations. The discourse around enhancing data accessibility and security within the UTXO set reflects broader themes in blockchain development, including the balance between innovation and practicality.