- Bitcoin Core boosts OP_RETURN capacity to 4 MB this October.
- Change driven by core developers’ consensus.
- Impacts BTC transactions and data protocols.
The OP_RETURN expansion in the Bitcoin protocol significantly impacts transaction data handling, with predictions of increasing blockchain usage debates.
Bitcoin Core developers will upgrade the OP_RETURN function in the forthcoming v30 release, boosting data capacity from 80 bytes to 4 MB. This update, supported by 31 developers, reflects broad agreement, marking a substantial protocol change. Stakeholders, including Bitcoin developers and node operators, participated in the discourse. Although the change aims to enhance data storage on the blockchain, some community members express concern over potential blockchain bloat and fee volatility.
“The data limit expansion is a ‘terrible mistake’ and increases systemic risk to Bitcoin’s core property as sound money.” – Alexander Lin, Co-founder, Reforge
While immediate effects on Ethereum or altcoins are unlikely, Bitcoin’s transaction protocol and services like Ordinals may experience significant changes. Enhanced data capacity could affect transaction costs and on-chain project operations. As technologies leveraging Bitcoin’s OP_RETURN expand, market shifts and adjustments are anticipated. The lack of regulatory feedback underscores uncertainties in compliance and policy adaptation. Industry observers await potential technological impacts as the expanded capacity transforms blockchain data interactions.
