Bitcoin Core developers have committed to removing the network's 80-byte data storage limit by October 30, marking a significant shift in how the world's largest cryptocurrency handles non-financial information. The change, confirmed for Bitcoin Core version 30, will allow transactions to include up to 4 megabytes of arbitrary data per output through OP_RETURN fields.
What to Know:
- The update removes Bitcoin's current 80-byte limit on OP_RETURN outputs, potentially allowing 4MB of data per transaction output
- Critics argue this transforms Bitcoin from a peer-to-peer payment system into a data storage network
- The change addresses mining centralization concerns but has split the Bitcoin community over the network's fundamental purpose
Technical Implementation Sparks Developer Debate
The modification centers on OP_RETURN outputs, special transaction fields that enable users to embed arbitrary data directly onto Bitcoin's blockchain. These outputs gained prominence during 2024's Ordinals inscription boom when users began storing images, text and metadata on the network. Unlike regular transaction outputs, OP_RETURN fields don't create spendable outputs that would bloat Bitcoin's UTXO database.
Gloria Zhao, a core contributor who helped approve the changes, defended the decision in GitHub documentation and social media posts. "Bitcoin Core is just one protocol implementation that can be copied and modified by anybody," Zhao explained. "The only thing that makes it special is the way its contributors make decisions."
The policy shift represents Bitcoin Core's attempt to align with mining realities rather than enforce restrictions that users circumvent through potentially harmful methods.
Mining Centralization Concerns Drive Policy Change
Zhao cited centralization pressures as the primary motivation behind removing OP_RETURN limits. When Bitcoin Core's rules proved stricter than what miners would reliably accept, large players began bypassing the public transaction pool entirely. Instead, they dealt directly with miners through private arrangements.
"This creates centralization pressure and undermines Bitcoin's design, hurting its censorship resistance," Zhao stated. The core developer argued that people storing data through harmful methods create "a long term cost to the network" by permanently bloating Bitcoin's memory requirements.
By removing the restrictions, Bitcoin Core hopes to encourage users toward cleaner data storage methods. The change acknowledges that users will store data on Bitcoin regardless of official policies.
However, the implementation allows individual users to manually restore the 80-byte limit if they prefer the original restrictions.
Community Backlash Highlights Fundamental Disagreements
The announcement triggered intense debate within Bitcoin's development community, exposing deep philosophical divisions about the network's purpose. Critics argue the change fundamentally alters Bitcoin's identity from a peer-to-peer payment system to a general-purpose data storage platform.
Jason Hughes, a longtime Bitcoin Core contributor, warned that the modification changes "the nature of what the Bitcoin network itself is in its entirety." His concerns reflect broader worries among Bitcoin purists who view data storage applications as mission creep from the network's original monetary focus.
Software engineer Juan David Diaz challenged the decision-making process itself. "There was no clear consensus on this, and therefore should have been never merged," he commented on the GitHub thread discussing the changes.
Another critic, writing under a pseudonym through a newly created GitHub account, called the decision "a disgraceful precedent" and insisted "there is no consensus for this change."
Configuration Options Provide Temporary Compromise
Despite the controversy, some developers emphasized that individual node operators retain control over their own systems. An engineer claiming to work at Alpen Labs, a ZK-enabled Bitcoin infrastructure developer, noted that users can still impose their own limits through configuration settings.
"You can still just set your own limits in your config," the pseudonymous engineer explained. "If you disagree, you can just change it on your nodes."
This flexibility provides a temporary middle ground for the divided community. Users who oppose expanded data storage capabilities can maintain the original 80-byte restriction on their individual nodes.
However, Bitcoin Core plans to remove these configuration options entirely in future versions, making the expanded data storage permanent across the network.
Closing Thoughts
The October 30 implementation of Bitcoin Core version 30 will eliminate long-standing data storage restrictions, allowing up to 4MB of arbitrary data per OP_RETURN output while addressing mining centralization concerns through policy alignment with existing practices.
Alt Text: Bitcoin developers set October deadline to remove data storage limits amid community debate.