Bitcoin Core Proposes Unlimited OP-Return Size for Enhanced Security

On June 10, a significant transaction was monitored by Onchain Lens, where a whale spent 2 million USDC to purchase 1.6 million FARTCOIN at an average price of $1.25. This transaction follows a previous one where the same whale made a profit of $368,500 by trading FARTCOIN.

The Bitcoin Core development community has been engaged in a heated debate following the release of a statement titled "Bitcoin Core Development and Transaction Relay Policy." This announcement has drawn comparisons to the controversial "New York Agreement" and has sparked discussions within the community. The statement outlines plans to implement a built-in transaction relay within the Bitcoin Core software, a move that has raised concerns and ignited debates.

The proposed transaction relay is seen as a precursor to the removal of the OP-Return size restriction, which has been a contentious issue for some time. Two years ago, scripts began embedding content into the Bitcoin blockchain's OP-Return area, effectively bypassing the block size limit. This practice, dubbed a "card bug," has divided the community into two factions: the mainstream right, represented by the Bitcoin Core team, and the far right, which includes figures like Luke. The far right faction introduced a garbage filter in the second-ranked client, Knots, to treat these script transactions as junk and refuse to mine them. This move caused an Ordi crash but was seen as a necessary measure to prevent the blockchain from being used as a storage medium.

The Core team, however, believes that legitimizing these scripts is a better approach than continuing to allow them to sneak onto the chain. They have proposed a new pull request to change the OP-Return size from 80KB to unlimited, effectively lifting the restriction on scripts. This move is seen as an additional subsidy to miners, as it allows them to earn more by including these scripts in blocks, thereby enhancing the security of the Bitcoin network.

The transaction relay policy aims to address two main issues: preventing DoS attacks by filtering out spam 0-fee transactions and speeding up transaction block propagation. This relay is voluntary, and users can choose not to use it. The Core team's proposal includes mild spam filtering rules, which are different from the radical spam filtering rules used by some volunteers in the past. The far right faction believes that data embedding is a form of spam and should be eliminated, while the Core team argues that only purely DoS attacks should be filtered out.

The implementation of the transaction relay by the Core team may lead to a decline in the market share of those using radical spam filtering rules. This is because the Core team's mild spam filtering rules are more inclusive and less restrictive. The Core team's approach is seen as a way to maintain the security and lack of transaction censorship that Bitcoin is known for, while also providing additional revenue to miners.

The debate surrounding the transaction relay policy highlights the ongoing tension between different factions within the Bitcoin community. The Core team's proposal is seen as a compromise that benefits both miners and users, while also addressing the issue of spam transactions. However, opponents argue that this move is a concession to miners at the expense of users. The Core team, however, maintains that Op_Return users are also Bitcoin users and that the proposal is in line with the principles of Bitcoin's semi-official Core team.