Subject: Re: [bitcoin-dev] [BUG]: Bitcoin blockspace price discrimination put simple transactions at disadvantage

From: Nagaev Boris <[email-masked]>
Date: Wed, 27 Dec 2023 16:06:13 -0300

On Wed, Dec 27, 2023 at 2:26 PM Greg Tonoski via bitcoin-dev
<[email-masked]> wrote:
> As a result, there are incentives structure distorted and critical
> inefficiencies/vulnerabilities (e.g. misallocation of block space,
> blockspace value destruction, disincentivized simple transaction,
> centralization around complex transactions originators).
>
> Price of blockspace should be the same for any data (1 byte = 1 byte,
> irrespectively of location inside or outside of witness), e.g. 205/205
> and 767/767 bytes in the examples above.

Witness data does not contribute to utxo set. The discount on storing
data in witness creates an incentive to store data exactly in the
witness and not in the parts contributing to utxo set.

$ du -sh blocks/ chainstate/
569G    blocks/
9.3G    chainstate/

Witness data is part of the "blocks" directory which is not
latency-critical and can be stored on a slow and cheap storage device.
Directory "chainstate" contains the data needed to validate new
transactions and should fit into a fast storage device otherwise
initial block download takes weeks. It is important to maintain the
incentives structure, resulting in a small chainstate.

-- 
Best regards,
Boris Nagaev