OP_RETURN limits: Pros and Cons

This proposal is not only significant for its immediate application but also for its potential to inspire innovative approaches and strategies in problem-solving among peers and colleagues. By sharing his insights on accessible platforms, Togami fosters open communication and collaboration within the community, thereby enhancing the collective knowledge base and pushing the boundaries of innovation across various disciplines.

The discourse surrounding Bitcoin script operations, specifically OP_RETURN versus OP_FALSE OP_IF, delves into the nuances of creating nonspendable outputs within transactions. OP_RETURN is lauded for its efficiency and straightforwardness in marking transactions as nonspendable by embedding data. This method stands out for requiring minimal data and incurring lower costs. Conversely, OP_FALSE OP_IF introduces complexity through its conditional script, potentially leading to larger transaction sizes and higher fees. The discussion emphasizes the economic and computational benefits of opting for OP_RETURN over OP_FALSE OP_IF for its simplicity and direct approach to achieving nonspendability, advocating for its use in applications that require data embedding in the blockchain.

Furthermore, the conversation explores the limitations imposed by OP_RETURN in Bitcoin, including an 83-byte limit per output and the allowance of only one such output per transaction. These restrictions balance the need for data embedding with maintaining blockchain efficiency and scalability. The impact of these limitations extends to the Bitcoin network's Unspent Transaction Outputs (UTXO) set and full node resource usage. Alternatives for users and protocol developers who either align with or seek to bypass these limits are discussed, suggesting solutions like applying patches, using older software versions, or exploring implementations like Libre relay or Slipstream. Moreover, discussions in mailing lists and forums, including contributions on a Bitcoin development group thread and comments on Github, highlight technical considerations and aim to steer clear of political debates, focusing instead on enriching understanding through research and discourse on OP_RETURN limits.