Bitcoin Node Scan Finds 96,000 Fake Address Outputs

A fresh blockchain census from data firm Bitquery highlights a growing issue for Bitcoin node operators. The study scanned nearly one million blocks and found that text embedded in transactions can impose very different costs on the network depending on how it is written.

Researchers discovered over 96,000 fake address outputs that remain stuck in the unspent transaction output set, known as the UTXO database. These outputs place readable text where a normal address hash should go, tricking nodes into treating them as spendable coins even though no private key exists to unlock them. As a result, roughly 3.2 Bitcoin sits permanently trapped and burdens the active node state.

In contrast, standard data carriers like OP_RETURN add text to the block history without bloating the vital UTXO database. Developers have long encouraged using proper data fields instead of fake addresses to protect node performance. Traders and network observers should monitor how core developers address database bloat and whether future software updates introduce stricter relay policies for messy transaction types.