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sonnyxsm / datalimits.md
Last active May 13, 2025 05:05
Weighing the choice of removing or keeping OP_RETURN data limits in Bitcoin Core 5/9/2025

From Bitcoin Core version 0.9.0 released:

On OP_RETURN: There was been some confusion and misunderstanding in the community, regarding the OP_RETURN feature in 0.9 and data in the blockchain. This change is not an endorsement of storing data in the blockchain. The OP_RETURN change creates a provably-prunable output, to avoid data storage schemes – some of which were already deployed – that were storing arbitrary data such as images as forever-unspendable TX outputs, bloating bitcoin's UTXO database.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.

Pros

Limits the delays of block propagation

OP_RETURN data remains prunable

Less stress on the UTXO set, which causes the blockchain to bloat in size

Mitigates mining centralization