Bitcoin Core Developers Propose Removing 80-Byte OP_RETURN Limit, Sparking Debate

Bitcoin Core developers have announced their intention to remove the 80-byte limit on OP_RETURN in the upcoming release. This decision has sparked a heated debate within the Bitcoin community, with developers and users expressing a range of opinions on the potential impacts of this change.

OP_RETURN is a feature in Bitcoin Script that allows for the embedding of arbitrary data within transactions. The current 80-byte limit restricts the amount of data that can be included, and the proposed removal aims to eliminate this restriction, potentially enabling more efficient data storage on the blockchain. However, this move has been met with significant criticism, with some developers and users warning of potential censorship and other unintended consequences.

Greg Sanders, a Core contributor and Engineer at Blockstream, argued that the current limit merely channels data embedding into more opaque forms that cause damage to the network. He stated that removing the limit would yield a cleaner UTXO set and more consistent default behavior. Sanders also noted that the cap has created perverse incentives, pushing users to embed data in fake public keys or spendable scripts.

However, not all developers are in agreement. Luke Dashjr, a Core developer, has long viewed inscriptions and other data storage as spam and has warned that this change could be "utter insanity." Dashjr maintains Bitcoin Knots, a more customizable fork of Bitcoin Core, which has seen growing adoption. Bitcoin Knots allows users to reject non-payment transactions like inscriptions, appealing to those seeking greater control over their nodes.

Prominent industry figures, such as Samson Mow, have encouraged node operators to either not upgrade their version of Bitcoin Core or to use Knots instead. Mow and others argue that the removal of the OP_RETURN limit could fundamentally shift the direction of Bitcoin, potentially leading to a more centralized and less transparent network.

Sanders defended the removal of the cap, stating that it aligns with Bitcoin’s ethos of minimal, transparent rules. He argued that by retiring a deterrent that no longer deters, Bitcoin Core lets the fee market arbitrate competing demands. However, this perspective has not brought much consensus within the community, with many expressing concerns about the potential implications of the change.

The debate highlights the ongoing tension within the Bitcoin community between those who prioritize decentralization and transparency and those who prioritize efficiency and scalability. The decision to remove the OP_RETURN limit will ultimately be made by the Bitcoin Core developers, who will consider the feedback from the community and the potential implications of the change. The outcome of this debate will have significant implications for the future of the Bitcoin network and its use as a decentralized data storage system.