TL;DR

The upcoming release of Bitcoin Core will, by default, allow transactions with OP_RETURN outputs larger than 80 bytes, removing an old restriction.
The change aims to reduce harmful practices like fake output addresses that were already overloading the network.
Although the community is divided, many see this evolution as a step forward for crypto innovation.

Bitcoin developers are moving toward a historic update that will remove the 80-byte limit for OP_RETURN data in transactions. Greg Sanders announced on May 5 via GitHub that the next version of Bitcoin Core will allow these transactions to be relayed and mined, noting that the original limit no longer serves its purpose. The OP_RETURN feature enables embedding information on the blockchain, such as messages, smart contracts, or even digital art, opening up new creative and technological possibilities that could transform the ecosystem.

The restriction was initially created to avoid excessive use of block space for non-financial data, but Sanders explained that users found ways to bypass it, like using fake output addresses, which only caused more issues. Furthermore, services such as MARA Slipstream and Mempool Accelerator were already ignoring this limit, showing that the restriction was, in practice, ineffective. This removal could also boost new financial and social solutions, like public records and decentralized identity verification, further strengthening Bitcoin’s utility and expanding real-world use cases.

Intense Debate Within The Bitcoin Community

The news has sparked divided opinions. Figures such as Samson Mow, CEO of Jan3, and Marty Bent from the Ten31 Fund noted on social media that there is currently no clear consensus on this change. Some fear that prioritizing non-financial data could weaken Bitcoin’s core value as a decentralized digital currency. However, proponents argue that opening the network to more use cases increases its resilience and global adoption potential.

Currently, 4.5% of nodes are running Bitcoin Knots, an alternative implementation created by Luke Dashjr, reflecting the diversity of opinions across the network.

Opportunities For Crypto Innovation

For the pro-crypto sector, this update represents an exciting opportunity. Freeing OP_RETURN will allow experimentation with decentralized applications, Bitcoin NFTs, permanent records, and creative solutions that were previously difficult or costly to implement. It also reinforces Bitcoin’s image as a living, evolving technology capable of adapting to challenges without sacrificing its essence.

Although the debate remains open, this move could mark a turning point in the history of the Bitcoin ecosystem. Will this be the push Bitcoin needs to enter a new era of innovation?

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Filed under: News - @ May 6, 2025 1:25 pm