A proposal to remove the arbitrary data capacity limits on Bitcoin transactions is gaining traction, sparking debate about the future of the cryptocurrency network. The initiative seeks to eliminate restrictions on OP_Return outputs and modify settings like -datacarrier and -datacarriersize, which currently limit the amount of data users can include. While these rules were implemented to prevent spam on the Bitcoin network, proponents argue they are outdated and unnecessary.
Despite these limits, protocols and users have developed workarounds for exceeding data capacity. For example, Marathon Digital’s Slipstream bypasses public mempools by submitting transactions directly to miners, while Libre Relay, a fork of Bitcoin Core, removes the enforcement rules altogether, allowing projects to send large amounts of data without constraints. Even more, some protocols utilize alternative methods like storing data in unspendable outputs or scriptsigs to work around OP_Return.
Bitcoin core developers are poised to implement this change, potentially shifting Bitcoin into a less-centralized format, despite vocal opposition from the community. Proponent Todd argues that acknowledging current trends and adapting Bitcoin Core’s functionality is crucial for the network’s future.
The proposal aims to maintain the standard form of OP_Return outputs by allowing a single OP_Return followed by zero or more data pushes.
This push comes at a time when Bitcoin-native data applications are flourishing. Ordinals, which embed digital assets onto individual satoshis, and BRC-20 tokens, utilizing OP_Return for data storage, have driven an increase in on-chain activity. For instance, the rise of these technologies has seen non-financial transactions soar, according to Glassnode, highlighting their growing role within the Bitcoin ecosystem.
In conclusion, this proposal reflects a shift towards expanding data capacity and adapting to the evolving nature of Bitcoin usage. It represents a significant change for the cryptocurrency world, one that could alter the landscape of Bitcoin’s functionalities.