Bitcoin Core’s Bold Move: Removing OP_RETURN Data Limit in Next Upgrade

Bitcoin Core Developers Plan Major Network Update with OP_RETURN Limit Removal

Bitcoin Core developers have announced plans to remove the long-standing limit on transaction data in the upcoming network upgrade. The decision, confirmed by Bitcoin developer Greg Sanders on May 5 via GitHub, will allow transactions with OP_RETURN outputs exceeding 80 bytes to be relayed and mined by default. This change will facilitate the inclusion of more data in a more efficient manner.

The OP_RETURN Output and Its Significance

OP_RETURN is a specialized transaction output type that enables the storage of small amounts of data on the Bitcoin blockchain. This feature gained significant attention during the ordinals inscriptions craze of early 2024. Unlike regular outputs, OP_RETURN outputs are not spendable, and they do not contribute to the bloat of unspent transaction outputs (UTXOs). However, the previous 80-byte limit for OP_RETURN outputs was seen as a restrictive measure.

Why the Limit is Being Removed

The original cap, once a “gentle signal” for careful block space usage, has outlived its usefulness, Sanders stated. Over time, users found workarounds, such as using fake output addresses, which were detrimental to the network. In some cases, mining services were already ignoring the cap. Sanders argued that removing the limit would lead to a cleaner UTXO set, more consistent network behavior, and a better alignment with Bitcoin’s current usage.

Controversy Surrounding the Proposal

Despite the benefits outlined by developers, the proposal has sparked controversy within the community. Critics, including Bitcoiner Samson Mow, expressed concerns over the lack of consensus in introducing this change. Some Bitcoin users are dissatisfied with the proposal, arguing that it could undermine Bitcoin’s primary financial utility. Others raised questions about potential conflicts of interest tied to the change.

Looking Ahead

The proposal has garnered broad support, though not unanimous agreement. The debate over OP_RETURN’s role in Bitcoin’s future is ongoing, and some users may choose not to upgrade to the new version if they disagree with the change. As the upgrade approaches, the community continues to weigh the potential impact of removing the limit on Bitcoin transactions.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.