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The validity of most Bitcoin blocks is confirmed using the Bitcoin Core client, making it a cornerstone of the Bitcoin network. Developers working on Bitcoin Core often have significant influence over the protocol. Recently, they proposed removing limits on arbitrary data stored in blocks, such as text messages, images, and other non-monetary information. This proposal has sparked heated debates within the Bitcoin community, with critics expressing concerns about its potential impact on the network.

What is Bitcoin Core Changing?

The upcoming version of Bitcoin Core, scheduled for release in October, will remove the OP_RETURN limit. OP_RETURN was introduced in 2014 to restrict the amount of arbitrary data that could be included in Bitcoin transactions. At the time, developers aimed to limit this data to 83 bytes per transaction to prevent unnecessary strain on the blockchain and its Unspent Transaction Output (UTXO) database. Arbitrary data, such as Bible verses or images, would be ignored by the network while prioritizing monetary transactions.

Bitcoin Core developers have historically discouraged using the Bitcoin blockchain for storing non-monetary data, citing efficiency concerns. The 2014 release notes for Bitcoin Core 0.9.0 stated:

“Storing arbitrary data in the blockchain is still a bad idea; it is less costly and far more efficient to store non-currency data elsewhere.”

However, the new update will eliminate the 83-byte limit and allow users to set their own limits manually. By default, there will be no restrictions. This change could encourage the use of Bitcoin for storing various types of media content. While some argue this could expand Bitcoin’s functionality, others worry it might lead to network spam and strain.

Conflicting Reasoning Behind the Change

The reasoning behind this decision has been a point of contention. In a statement released on June 6, 2025, Bitcoin Core developers cited censorship resistance as their primary motivation. They believe removing the limit aligns with Bitcoin’s decentralized ethos by allowing users more freedom in how they use the blockchain.

However, developer Peter Todd, who proposed the removal of OP_RETURN limits, offered a different perspective. He argued that the limit has inadvertently led to inefficiencies, with entities finding workarounds that increase the size of the UTXO set unnecessarily. Todd described this as a “harmful burden” for developers:

“Entities are using unspendable outputs in lieu of OP_RETURN outputs precisely because of the size limit. This increases the UTXO set size unnecessarily… There’s no reason why Bitcoin Core should be forced to maintain arbitrary limits that are ineffective and even harmful.”

Critics have also raised concerns about centralization. While alternative software like Bitcoin Knots exists, its influence is limited compared to Bitcoin Core. Todd himself acknowledged that Bitcoin Core’s dominance in the network makes its decisions pivotal to Bitcoin’s future.

Community Backlash

The Bitcoin community has been divided over this change. Many argue that Bitcoin should remain a digital cash system rather than a platform for hosting non-monetary data like videos or images. Critics fear that relaxing the data limits could transform Bitcoin into a multipurpose blockchain, similar to Ethereum, at the expense of its primary use case as a payment system.

Community members have also expressed frustration with how Bitcoin Core developers have handled the implementation. Some claim dissenting voices were suppressed on platforms like GitHub, while others allege that discussions were moved away from public spaces to limit opposition. This approach has fueled accusations of bad faith and a lack of transparency.

Prominent voices in the community, such as Luke Dashjr, have criticized the change for enabling spam on the blockchain:

“Those opposing the change advocate for Bitcoin remaining an electronic cash system, not a blockchain to host videos, images, etc., which may turn it into a platform similar to many other multi-purpose blockchains.”

Potential Implications

As the debate continues, questions remain about the long-term impact of this decision. Will Bitcoin’s core identity as “digital gold” and a decentralized payment system be compromised? Or will this change open new opportunities for innovation on the Bitcoin blockchain?

While some argue that dissatisfied users can fork the network, history shows that such forks often struggle to gain traction. The split between Bitcoin Cash (BCH) and Bitcoin SV (BSV) serves as a cautionary tale, with both forks ultimately failing to surpass Bitcoin’s dominance.

The outcome of this controversy will likely become clearer after the October release of Bitcoin Core’s new version. Until then, the community remains divided, with strong opinions on both sides of the debate.

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