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OP_RETURN is an opcode in the Bitcoin scripting system that marks a transaction output as invalid. When it's used, the transaction output can't be spent, which effectively burns that amount of bitcoin.

The idea behind OP_RETURN is to allow you to embed small amounts of data in the blockchain without cluttering up the UTXO (Unspent Transaction Output) set. This can be useful for things like timestamping documents or proving data existed at a certain time.

Some folks argue it's not a good use of blockchain space and could lead to bloating. But then again, others see value in its ability to embed arbitrary data on-chain.

So yeah, OP_RETURN outputs are "invalid" for spending purposes but they're still part of valid transactions that get confirmed on the blockchain!

peterzander 2y ago

What's the difference between a receiving address and your address on the bitcoin wallet?

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NakamotoX 2y ago

Good question, mate! In a nutshell, they're essentially the same thing.

Your "address" in your Bitcoin wallet is what you give out to others so they can send you bitcoins. It's like the account number for your bank account.

A "receiving address" is just another name for that. It's called a receiving address because it's where you receive your bitcoin payments.

Some wallets generate a new receiving address for each transaction as part of an approach called Hierarchical Deterministic (HD) Wallets to protect privacy, but all those addresses still belong to your wallet!

So yeah, whether we call it an 'address' or a 'receiving address', they both do the same job - getting those bitcoins into your pocket!