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10 sats \ 5 replies \ @standardcrypto 6 Sep \ parent \ on: Nicolas Dorier (BTC Payserver): increasing OP_RETURN limit will help our users bitcoin
"witness data—which includes digital signatures—does not contribute to the long-term size of the UTXO set that nodes must store permanently."
https://bitcoinmagazine.com/glossary/witness-discount
this turned out to be false?
searchcrumb: "why does segregated witness have a witness discount?"
I think it's more that the witness discount incentivized the creation of way more UTXOs, which weren't used for monetary transactions but instead used to store arbitrary data. So the bloat is the number of UTXOs that the witness discount incentivized
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iiuc you're saying is this:
utxo bloat is inevitable, since nothing forces people to spend their utxos, whether they are spendable or not.
the witness discount just redistributed the bloat to aegwit utxos.
I guess that's why I support bigger op returns. At least they can be pruned.
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Right, but the original intent of the witness discount was to incentivize utxo consolidation.
Before the discount, a tx with 1 input and 2 outputs was cheaper than a tx with 2 inputs and 1 output (because 2 inputs require 2 signatures). The discount was an attempt to equalize the costs and reduce utxo bloat.
It's wild to me that it had the complete opposite effect.
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i wonder if they were aware of the possibility that people would use the witness discount to store arbitrary data, or if they were caught by surprise
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I'd wager they were caught by surprise.
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