Method and system for optimization of data storage for distributed ledgers

A system for optimizing blockchain storage size through use of relative values, comprising:

• a blockchain network that manages a blockchain;
• and
• a blockchain node in the blockchain network, the blockchain node including
• a receiver receiving one or more blockchain data values, where each blockchain data value includes at least one or more unspent transaction outputs, at least one destination address, and, for each of the at least one destination address, an original currency amount,
• a processor
• identifying a base value, wherein the base value is an average currency amount based on the original currency amount included in each of the one or more blockchain data values for each of the at least one destination address,
• modifying the original currency amount included in each of the one or more blockchain data values for each of the at least one destination address to be a relative currency amount based on a difference between the identified base value and the original currency amount, wherein a digital representation of the relative currency amount is at least one bit smaller than the original currency amount, and
• generating a new block, where the new block includes a block header and the modified one or more blockchain data values, the block header including at least a block reference value, a timestamp, and a data reference value based on the modified one or more blockchain data values, the modified one or more blockchain data values including the at least one or more unspent transaction outputs, the at least one destination address, and, for each of the at least one destination address, the relative currency amount.