TL;DR
- Bitcoin Core 30 will raise the data limit for OP_RETURN transactions from 80 bytes to nearly 4 MB, improving the management of the UTXO set and overall system consistency.
- The change has sparked mixed reactions: some worry the network could get clogged with irrelevant data, while developers emphasize maintaining neutrality and censorship resistance.
- Users will be able to manually control the data limit, although this setting might be removed in future releases.
Bitcoin Core 30, the next major update supporting the BTC network, will arrive in October with a significant increase in the allowed data size for OP_RETURN transactions. Currently, these transactions can include up to 80 bytes of data, but version 30 will raise that limit to nearly 4 MB, matching the maximum block size.
This adjustment aims to address problems linked to current on-chain data storage methods. The small limit has encouraged alternative approaches that complicate managing the UTXO set, which represents unspent outputs from previous transactions. By increasing OP_RETURN’s data capacity, the goal is to simplify and clean up the UTXO set, enhancing system performance and consistency.
No Consensus in the Bitcoin Community
The change has divided opinions within the community. Some argue that allowing such large amounts of data could flood the network with irrelevant information and harm Bitcoin’s core financial function. On the other hand, developers stress that preserving neutrality in handling data and resisting any form of censorship is essential to maintaining the network’s decentralized nature.
Gloria Zhao, one of the developers, explained that this modification fixes a mismatch between the real impact and current rules on how data is stored on the blockchain. Greg Sanders, who merged the proposal, highlighted that the update will bring tangible benefits, including cleaner UTXO management and a more consistent default user experience.
Independence, Resistance, and Decentralization
The debate has also touched on Bitcoin Core’s governance model. Zhao emphasized that developers must stay independent from external pressures, whether corporate or social, to protect the principles guiding software development. She warned that if this approach is ever abandoned, users might switch to alternative implementations.
Not everyone agrees with raising the limit. Luke Dashjr, another well-known developer, opposes the change and has advised those concerned to avoid upgrading or to use alternative nodes like Bitcoin Knots.
Bitcoin Core 30 will allow users to manually adjust OP_RETURN data limits, though these settings currently trigger warnings and may be phased out in future versions
