This patch enables compressed pubkeys when -compressedpubkeys is passed. These are 33 bytes instead of 65, and require only marginally more CPU power when verifying. Compressed pubkeys have a different corresponding address, so it is determined at generation. When -compressedpubkeys is given, all newly generated addresses will use a compressed key, while older/other addresses keep using normal keys. Unpatched clients will relay and verify these transactions.
Tested on testnet with both normal and encrypted wallets, using compressed and non-compressed keys.
Initial idea and tests for this patch were done by roconnor.