MultisigBackup.com: Backup and recover a k-of-n descriptor using only n seeds

The ongoing discussion about the implications of unspent transaction outputs (UTXOs) that are unlikely to be spent due to their association with multi-sig backup inscriptions highlights a nuanced debate within the cryptocurrency community. The concern is that, even though these UTXOs hold minimal value, their permanence in the blockchain contributes to space pollution within the Bitcoin network's chainstate. This issue is viewed through different lenses; on one hand, it reflects a wasteful practice that burdens the network's storage requirements, but on another, it embodies a subjective value tied to the educational benefits provided by resources like multisigbackup.com, which aim to enhance the community's understanding of multi-signature transactions and security practices.

The impact of such UTXOs on the Bitcoin network's infrastructure is quantifiable. Data retrieved using bitcoin-cli gettxoutsetinfo muhash for block 882991 reveals a total of 179,791,457 txouts, indicating the vast scale of transaction outputs maintained across the network. The chainstate, which represents the database of all spendable UTXOs, currently demands 11.5 GB of storage space on each Bitcoin Core node. This figure has experienced fluctuations, decreasing from 12 GB as of December 24, 2024, but significantly higher than the 4.7 GB reported on December 24, 2022. These statistics underscore the growing demand for storage space driven by the increasing number of UTXOs, a trend documented in further detail at anyone.eu.org/bitcoin.txt and its archived records.

This evolving scenario presents a complex challenge for the Bitcoin ecosystem, balancing the tangible costs of increased storage requirements against the intangible benefits of fostering a more secure and educated user base through innovative practices like multi-sig inscriptions.