Data Storage Methods

Oded Leiba edited this page Nov 9, 2016 · 2 revisions

Data storage on the blockchain

There are several ways to store data on top of the Bitcoin blockchain.


Encode data in the number of satoshis being sent to an address.

Fake Addresses

Encode data in the Address itself. Because the Address encodes data of your choice it cannot have been the result of a derivation from a private key (with extremely high probability) and thus any coins sent to such addresses are lost (or "burnt").

Vanity Addresses

Brute force through keys until you get an address that encodes your data, extremely resource intensive and impractical for anything bigger than a couple of bytes.

1 of N Multisig Address

These are more complex Bitcoin addresses that require one key out of N to redeem. We can use only one key as a real key (like with a standard address) and encode 32 bytes of data in the remaining N-1 keys.


OP_RETURN is a command in the Bitcoin scripting language that was specifically added to allow the inclusion of metadata on the blockchain. Currently 80 bytes of information can be added to a transaction using OP_RETURN.

Input Sequence

This is an unused 32 bit integer .


Miners can include up to 100 bytes worth of data in a coinbase transaction.

Comparison of Data Storage Methods

Method Pros Cons
Value Very Simple Expensive, temporary burden on the network
Vanity Address Simple Resource intensive, impractical for more than a few bytes
Fake Address Simple, 20 bytes Lost coins, permanent burden on the network
1 of N Multisig Address 32x(N-1) bytes More complex, temporary burden on the network
OP_RETURN 80 bytes, no burden on the network
Sequence Only 4 bytes
Coinbase Up to 100 bytes Can only be used by Miners
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