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Subject: Re: [bitcoindev] Relax OP_RETURN standardness restrictions
Date: Fri, 18 Apr 2025 14:03:08 +0200
References: <rhfyCHr4RfaEalbfGejVdolYCVWIyf84PT2062DQbs5-eU8BPYty5sGyvI3hKeRZQtVC7rn_ugjUWFnWCymz9e9Chbn7FjWJePllFhZRKYk=@protonmail.com>
To: Antoine Poinsot <darosior@protonmail.com>,
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> Op 17 apr 2025, om 20:52 heeft 'Antoine Poinsot' via Bitcoin Development =
Mailing List <bitcoindev@googlegroups.com> het volgende geschreven:

> Developers are now designing constructions that work around these limitat=
ions. An example is Clementine, the recently-announced Citrea bridge, which=
 uses unspendable Taproot outputs to store data in its "WatchtowerChallenge=
" transaction due to the standardness restrictions on the size of OP_RETURN=
s[^0]. Meanwhile, we have witnessed in recent years that the nudge is ineff=
ective to deter storing data onchain.
>=20
> Since the restrictions on the usage of OP_RETURN outputs encourage harmfu=
l practices while being ineffective in deterring unwanted usage, i propose =
to drop them. I suggest to start by lifting the restriction on the size of =
the scriptPubKey for OP_RETURN outputs, as a first minimal step to stop enc=
ouraging harmful behaviour, and to then proceed to lift the restriction on =
the number of OP_RETURN outputs per transactions.

It might be better to do both, if only to avoid repeating the discussion in=
 a year.

From perusing the Citrea paper (page 18) it seems a single output is enough=
, and they only need 144 bytes.

1. Regarding size

The current ~80 byte limit was based on Counterparty needing it [0], and ot=
herwise using bare multisig. A similar argument would apply here. At the ti=
me there was discussion about how much space Counterparty really needed if =
their protocol was well implemented.

The 144 bytes consist of a Groth16 proof and the total chain work. Along si=
milar lines we could pick a number based on various cryptographic commitmen=
t schemes, and then only raise the limit by that much.

But that just guarantees repeating the argument in a year when some protoco=
l needs a slightly higher limit. In a post-inscription world that seems poi=
ntless. My preference is to drop the size limit entirely.

2. Regarding count

IIUC there's no consensus limit on the size of an OP_RETURN [1] and there's=
 also no standardness rule on the size of a scriptPubKey. The size of a sin=
gle OP_RETURN is limited only by the maximum transaction size, i.e. 100 kvB=
.

Without a size restriction on individual OP_RETURN outputs, there's no poin=
t in limiting their number.

That said, it would be interesting to know if any protocols are thinking of=
 using multiple OP_RETURN outputs.

3. Reminder why we didn't do this earlier

In the August 2023 discussion [2] Murch wrote, in response to John Light:

>> is there ever a case where using OP_RETURN to embed data actually result=
s in fewer bytes onchain than embedding the same data using the segwit/tapr=
oot witness space
>=20
> Yes, a back-of-the-envelope calculation has me thinking that only payload=
s of 135 bytes would be cheaper with transcriptions than with nulldata outp=
uts. In detail:
[...]
> we learn that nulldata outputs are cheaper up to a payload size of 134 by=
tes, only above that inscriptions become a more blockspace efficient data c=
arrier.

Since we're discussing raising the limit to at least 144 bytes, the above a=
rgument would no longer be relevant.

And from what I recall at the time that was the only remaining reason to ke=
ep the OP_RETURN restrictions around a bit longer, despite heavy use of ins=
criptions.

4. PS - on liveliness assumptions

The paper [3] states the following assumption:

> We consider a secure ledger, i.e., a ledger that is safe and live. Safety=
 and liveness are defined as follows:
>=20
> ...
>=20
> Definition 2 (Liveness). A distributed ledger protocol is live with liven=
ess parameter u if all transactions written by any correct party at round r=
, appear in the ledgers of all correct parties by round r + u.

For standard transactions this already not trivially true. See all of Light=
ning pinning discussions.

For non-standard transactions, does BitVM2 keep all its transactions under =
100 kvB?

Otherwise your liveness assumption requires a direct connection to at least=
 one miner / pool that is trusted to not censor (though you can shop around=
 until the deadline).

Conversely, having actively used protocols that frequently require going ov=
er some standardises limit puts pressure on that limit for the reasons Anto=
ine outlined. So for anyone working on such protocols, please let this list=
 know, since these discussions can take a while.

- Sjors

[0] https://www.reddit.com/r/btc/comments/80ycim/a_few_months_after_the_cou=
nterparty_developers/?rdt=3D53592
[1] https://bitcoin.stackexchange.com/a/117595/4948
[2] https://gnusha.org/pi/bitcoindev/03551f0f-272e-2607-e95a-8ec671cbb9f3@m=
urch.one/#t (click on the html attachment)
[3] https://citrea.xyz/clementine_whitepaper.pdf

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