Bitcoin Developers Clash Over Proposal to Relax Data Storage Limits

Bitcoin developers are debating a proposal to remove the 80-byte limit on data attached to transactions via the OP_RETURN feature. This change, suggested by developer Peter Todd, aims to address users' current workarounds that exploit Taproot transactions to embed larger data, often resulting in network congestion.

The OP_RETURN feature allows small data attachments like notes or timestamps.
Critics, including Bitcoin Core developer Luke Dashjr, argue that removing the limit risks degrading Bitcoin's financial integrity and could lead to illegal content storage on the blockchain.
Supporters believe relaxing the limits may reduce UTXO bloat and improve blockchain efficiency.
Concerns have been raised about potentially harmful content being inscribed, as demonstrated by an Ordinals team inscribing a Nintendo 64 emulator onto the blockchain.
The proposal is currently under review, reflecting ongoing tension regarding Bitcoin's identity and purpose.