Purpose: It allows users to write a short message, a hash of a document, or other metadata onto the blockchain.
Limits: Historically, OP_RETURN outputs were typically limited to 80 bytes of data (though this is a relay policy, not a consensus rule, and some nodes/miners may accept larger ones, or this limit may be adjusted in future Bitcoin Core versions).
Use Cases: Timestamping retail email list documents (Proof of Existence), linking to off-chain data, issuing simple "colored coins" or tokens (though these are often more complexly managed off-chain), or even for creative messages (as seen with Ordinals and BRC-20 tokens, which leverage OP_RETURN and other aspects of Bitcoin's scripting capabilities).
Impact: OP_RETURN outputs are "provably unspendable," which allows nodes to prune them, preventing them from bloating the UTXO set (which is crucial for node efficiency).
Other Methods (Less Common/More Complex):
Historically, other methods like embedding data in fake multi-signature outputs or other non-standard scripts were used, but these are generally discouraged as they can bloat the UTXO set if not handled correctly.
Ordinals and BRC-20: Recent innovations like Ordinal Inscriptions leverage Taproot outputs and existing Bitcoin scripting features to "inscribe" arbitrary content (text, images, video) directly onto individual satoshis, effectively treating them as NFTs. This is a form of data entry, but it's not a simple one-off process; it requires specific tooling and an understanding of Bitcoin's transaction structure.
If "Bitcoin data entry" is interpreted as analyzing the data that has already been entered onto the blockchain, then it refers to:
Blockchain Explorers: Websites (like Blockchain.com, Mempool.space) that parse the blockchain data and present it in a human-readable format.
Data Analysis (Interpreting "Data Entry"):
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