Non-confiscatory Transaction Weight Limit

Protocols requiring large transactions typically involve complex operations beyond mere data storage. These protocols could theoretically distribute data across multiple smaller transactions if the need was solely for storage. However, the complexity and functionality demanded often necessitate large scripts that process or interact with the data in sophisticated ways. This requirement underscores the inherent difference between simple data storage needs and the comprehensive processing capabilities required by certain protocols.

The consideration of using the coinbase for storing data leads to an interesting discussion on the potential impacts of activating CheckTemplateVerify (CTV). CTV's activation could introduce a significant shift in how data and transactions are managed, particularly concerning the coinbase transaction. By implementing CTV, it might become feasible to substantially limit the size of the coinbase transaction. This is because mass payouts, which currently contribute to the bulkiness of coinbase transactions, could be efficiently relocated to subsequent, non-coinbase transactions. This move would not only streamline the coinbase but also facilitate a more trustless and efficient mechanism for handling large-scale transactions, potentially changing the landscape of transaction management within the network.