Bitcoin Core Lifts 80-Byte Limit on Transaction Data

Bitcoin Core developers have announced a significant change in the upcoming network upgrade, lifting the restriction on transaction data. This move aims to enhance the efficiency of including more data within transactions. Greg Sanders, a Bitcoin developer, revealed on GitHub that the next version of Bitcoin Core will allow transactions with OP_RETURN outputs exceeding 80 bytes by default, enabling any number of outputs. This change is expected to facilitate a more efficient way to include additional data in transactions.

Critics, however, have raised concerns about the lack of consensus on this proposal. Marty Bent, Managing Partner at Ten31 Fund, pointed out that there is currently no consensus on the OP_RETURN issue. This highlights the ongoing debate within the Bitcoin community regarding the best approach to handling transaction data.

OP_RETURN is a feature that allows for transaction outputs to store small pieces of data on the blockchain. This feature gained popularity during the Bitcoin ordered data boom in early 2024. Unlike regular transaction outputs, OP_RETURN outputs are unspendable and do not increase the Unspent Transaction Output (UTXO) set. This makes them an attractive option for storing data on the blockchain without affecting the overall transaction volume.