This document proposes a serialization scheme for compressing bitcoin transactions. The compressed bitcoin transactions can reach a serialized size of less than 50% of the original serialized transaction. One of the methods for compressing, involves reducing the transaction outpoints in a potentially lossy way, therefore it is an optional path for compression. Without compressing the outpoints, compressed transactions still reach less then 70% of the original size.
Reference Implementation: https://github.com/bitcoin/bitcoin/pull/29134
The reference implementation includes two new RPC endpoints to demonstrate how to use compressed transactions. The compressrawtransaction takes in a raw hex-encoded transaction and returns a compressed hex-encoded transaction, while the decompressrawtransaction accepts a compressed hex-encoded transaction and returns the original raw hex-encoded transaction.
Thanks- Tom.