Bitcoin update to raise data limit on divisive OP_RETURN function

An upcoming Bitcoin software update will increase the data limit on a divisive function that will allow significantly more images, text and documents to be stored on the Bitcoin blockchain, a developer says.

The Bitcoin Core 30 update slated for Oct. 30 will remove the 80-byte limit on the controversial OP_RETURN function and allow each output to carry up to 4 megabytes of data, Bitcoin Core developer Gloria Zhaopostedto GitHub on Monday.It comes three days after 31 Bitcoin Core devssigned a statementsupporting the change, known as merged pull request (MPR) #32406. The Bitcoin devs indicated on May 5 that thedata limit would be removed.

OP_RETURN enabled the Ordinals craze last year, allowing Bitcoin users to post everything on the blockchain fromnon-fungible token-like collectionsto the Afghan war logs published by WikiLeaks in 2010.

The slated change infuriated the conservative sect of the Bitcoin community, who argue that non-financial data clogs the blockchain with spam and believe the network should focus on peer-to-peer BitcoinBTC$109,639BitcoinChange (24h)0.10%Market Cap$2.17TVolume (24h)$33.01BView Moretransactions.

Crypto investment firm Reforge co-founder Alexander Linsaidon X that the data limit expansion is a “terrible mistake,” and claimed upping the limit on the function “increases systemic risk to btc’s core property assound money.”

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Other Bitcoiners, including the lead author of theproposal,Peter Todd, believe increasing the data limit will expandBitcoin’s use casesbeyond finance.

Bitcoin devs say let the users decide

In the GitHub statement, Zhao said the Bitcoin Core devs favored a more hands-off approach, allowing users to utilize the chain however they choose:

Faith in Bitcoin Core “broken”

Several Bitcoiners voiced frustration on the data limit expansion, including Satoshi Action Fund  CEO Dennis Porter.

“I’ve helped raise over $200,000 for core devs during my time in Bitcoin. My faith in their work is now broken,” Portersaid,adding that he will no longer support Bitcoin Core development.

Jason Hughes, vice president of Bitcoin mining firm Ocean,hintedthat he may walk away from the Bitcoin industry.

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“Personally, I’m out of energy on this fight,” he said in a lengthy X post.

Bitcoin Core losing market share

Since Todd introduced MPR #32406 on April 28, Bitcoin Core’s dominance in the market share ofBitcoin nodeshas fallen from around 98% to a little over 88%, a pseudonymous Bitcoinernotedon X.

The Bitcoin Knots client has chalked up almost all, if not all, of that market share, which is now sitting at 11.48%, coin.dancedatashows.

Bitcoin commentator Matthew R. Krattersaidthe decision to raise the data limit could spell long-term trouble for Bitcoin Core, adding its dominance could fall to the 20-30% range within the next one to three years.

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