An upcoming update to Bitcoin Core, version 30 will significantly increase the data capacity limit for OP_RETURN outputs, raising fundamental questions about blockchain usage and Bitcoin’s core purposes.
The upgrade will lift the longstanding 80-byte restriction on OP_RETURN, allowing substantially more data, potentially up to 4MB per output. Developers advocating for the change, including Gloria Zhao, emphasize user autonomy over how Bitcoin’s scripting capabilities are utilized, suggesting it unlocks new potential applications beyond simple value transfer.
However, the proposal has ignited significant controversy. Critics, such as Alexander Lin, decry the move as a ‘terrible mistake’, warning it could lead to blockchain bloating significantly. Opponents express concerns about drastic increases in storage requirements for network participants, potential network congestion, and the risk of diluting Bitcoin’s primary function as an efficient peer-to-peer electronic cash system.
The debate reflects deeper tensions concerning scalability and utility. Since the OP_RETURN expansion proposal gained prominence, the dominance of Bitcoin Core nodes across the network has declined noticeably, falling from 98% to 88%, indicating fracturing consensus and potential divisions within the ecosystem.
Proponents, including developer Peter Todd, counter concerns by pointing to the opportunities for innovation enabled by enhanced data capabilities. They highlight potential advancements in decentralized data storage methods and novel applications like on-chain digital art encoding, despite acknowledging persistent technical challenges in managing larger data payloads on the blockchain.