Bitcoin Core Drops OP_RETURN Data Limit in Next Update

This change will allow larger amounts of information to be included in transactions and remove the limit on how many OP_RETURN outputs can be added to a single transfer.

OP_RETURN is a special feature that lets users add small amounts of data to the Bitcoin BTC $107,695.55 network. Unlike normal transaction outputs, OP_RETURN outputs cannot be spent and do not add to the list of unspent transaction outputs, or UTXOs.

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The 80-byte limit on OP_RETURN data was initially added to discourage the use of Bitcoin’s limited block space for purposes other than payments. However, Bitcoin developer Greg Sanders explained in a May 5 GitHub post that this limit has become outdated.

The proposed change, pull request 32359, was developed by Bitcoin contributor Peter Todd at the request of Chaincode Labs. The new update will let nodes relay and miners include transactions with larger OP_RETURN outputs by default.

Sanders noted that while large data inscriptions will continue either way, removing the size limit allows them to happen in a clearer and less harmful manner. It also provides benefits such as a cleaner set of spendable outputs, more consistent behavior across the network, and better alignment with how users are already using Bitcoin.

Meanwhile, the Ethereum Foundation recently announced that it will focus on solving user experience issues and improving the core Ethereum ETH $2,707.07 network. Why? Read the full story.