Bitcoin Developer Proposes New Transaction Model
The draft design introduces off-chain tree structures to allow users to share a single Bitcoin transaction output.
Updated on Oct. 16, 2026 in Financial Planning
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Developer Olaoluwa Osuntokun has released a proposal for a new Bitcoin transaction model that uses off-chain trees to track individual user balances. The design allows multiple users to share a single transaction output on the Bitcoin network.
Why it matters
This model aims to improve how users share transaction outputs, potentially allowing for more efficient balance tracking. The proposal includes a reference implementation to support its technical feasibility.
The design features 3,019 executable checks and supports scenarios including a 541 vB exit size for 65,536 members. Solo exits are estimated at 1,020 vB or 1,030 vB serialized.
The players
Olaoluwa Osuntokun
Olaoluwa Osuntokun is a developer focused on technical improvements and scaling solutions for the Bitcoin network.
The details
The model uses a depth-16 tree containing 65,536 slots to manage user balances, with members proving their holdings through transactions that update the shared output. This system relies on a specific unproposed Bitcoin opcode known as OP_MERKLESUMUPDATE to function as designed.
Timeline
Oct. 15, 2026: Developer Olaoluwa Osuntokun released the draft design.
Market Dynamics
This proposal represents a shift in how Bitcoin transaction outputs are structured compared to current standards. It explores new architectures to manage shared data on the blockchain while keeping individual user balance tracking off-chain.
This proposal is a technical draft and does not currently impact active Bitcoin investments or transaction protocols. Users should monitor the development of the proposed OP_MERKLESUMUPDATE opcode to understand potential future changes to the network.
The takeaway
This draft design highlights the ongoing technical efforts to improve Bitcoin transaction efficiency through shared output models. It serves as a reminder that architectural proposals often require significant community consensus and new opcode support before implementation.
Further reading
For more on managing digital assets, see our guide on Financial Planning.
Source note: This article includes information reported by TokenPost.
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Should the Bitcoin network adopt new technical protocols to improve transaction efficiency?
