Bitcoin Core Proposes 4MB OP_RETURN Limit Increase

The Bitcoin core development team is proposing a significant update to the OP_RETURN function, aiming to increase its data storage limit from 80 bytes to 4 megabytes (MB) in the next software release. This move has reignited long-standing debates within the Bitcoin community.

Supporters of the update view it as a step towards innovation and user autonomy. They argue that increasing the OP_RETURN limit will enable more advanced on-chain applications, transforming Bitcoin from a simple payment system into a platform for richer digital expression. Developers like Peter Todd and Gloria Zhao believe that Bitcoin should empower users to define how they use the network, whether for financial transactions, digital collectibles, or archival documents. Zhao stated, “Demanding that Bitcoin Core prevent certain transactions from being mined reflects a misunderstanding of the relationship between open source software users and developers.” This hands-off philosophy asserts that Bitcoin Core shouldn’t dictate use cases, and instead, the market should decide what gets stored on-chain.

Advocates see this upgrade as a way to expand Bitcoin’s role in the digital world, making it more versatile and useful beyond just payments. As new technologies emerge that require more on-chain data capacity, this shift could help Bitcoin stay relevant and support broader digital use cases.

However, the proposed OP_RETURN update has also triggered a wave of dissent from Bitcoin veterans. Critics view the change as a betrayal of core principles, warning that it could bloat the blockchain and erode Bitcoin’s core mission as a lean, sound-money protocol. Dennis Porter, CEO of the Satoshi Action Fund, expressed disillusionment, stating, “My faith in their work is now broken.” This comes after he’d helped raise over $200,000 for Bitcoin Core developers. Jason Hughes, VP at Ocean mining firm, echoed the sentiment, hinting at his exit from the space. He stated, “I’m out of energy on this fight.”

As the update looms, the community finds itself once again at an impasse, with supporters and critics locked in a debate over the future direction of Bitcoin. The outcome of this debate will shape the evolution of the world’s most prominent cryptocurrency, determining whether it will remain a simple payment system or evolve into a more versatile digital platform.