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

From: Greg Tonoski <[email-masked]>
Date: Sun, 21 Jan 2024 18:14:14 +0100

On Wed, Jan 17, 2024 at 12:30 AM Nagaev Boris <[email-masked]> wrote:
>
> Node operators are likely to put UTXO set to SSD and blocks to HDD.
> SSD is more expensive than HDD.

Again, the UTXO set size argument is irrelevant. A simple transaction
is at disadvantage even if it doesn't result in a change of UTXO set
size.

> It is aligned with the fact that
> people putting data into blockchain are financially motivated to put
> it into witness data, i.e. into HDD. If miners charge the same per 1
> byte in a transaction output and 1 byte in witness, then people
> putting data into blockchain could put it into transaction outputs
> (why not, if the price is the same), (...)

By the same token, "people putting data into blockchain are
financially" demotivated to put them into non-witness data (e.g.
outputs) - which make vast majority of a simple, genuine transaction.
As a result "blockchain" changes its nature and becomes full of
bloated witness data (e.g. a JPEG in a single transaction in a
"pathological" 4MB block) instead of simple, genuine transactions.

> inflating the UTXO set (...).

UTXO set inflates naturally as there are more and more participants.
Besides, blockspace price discrimination didn't stop it. Again, the
UTXO set size argument is irrelevant to the subject.