BIP-330 is a Bitcoin Improvement Proposal that introduces Erlay-style transaction reconciliation (the ‘sendtxrcncl’ protocol) to make mempool synchronisation between nodes more bandwidth-efficient. Instead of announcing every transaction to every peer, nodes use set-reconciliation sketches to identify only the transactions a peer is missing. This reduces redundant relay traffic, improving the scalability and privacy of the peer-to-peer network that supports applications like Taproot assets.
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- Using minisketch-based set reconciliation, peers exchange compact sketches to discover differing transactions rather than flooding announcements. This lowers per-node relay bandwidth roughly linearly with connectivity and reduces the network footprint that adversaries can observe.