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BITCOIN SEASON 2: Bitcoin OP_RETURN War Explained

May 10, 2025
Bitcoin developers are in a heated battle over relaxing OP_RETURN limits, revealing deep divisions within the community. Some argue for increased data capacity, while others fear it could lead to spam and compromise Bitcoin's integrity. The podcast delves into what qualifies as spam, the future of non-financial transactions, and the rise of alternative node clients. Tensions echo past conflicts like the block size wars, raising crucial questions about Bitcoin's purpose—whether it's merely a currency or a platform for broader applications.
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INSIGHT

Bitcoin OP_RETURN Debate Heats Up

  • Bitcoin developers are fiercely debating whether to relax the OP_RETURN size limit for arbitrary data on Bitcoin.
  • This technical fight reflects deeper tensions about who controls Bitcoin's future and what it should be used for.
INSIGHT

OP_RETURN Technical Background

  • OP_RETURN is a field in Bitcoin used for arbitrary data, currently limited to 83 bytes.
  • Proposed changes would increase this limit to about one megabyte, enabling new use cases like rollups.
INSIGHT

Issues with Out-of-Band Transactions

  • Out-of-band transactions go directly to miners instead of through node networks.
  • This causes syncing delays, harms fee estimation, and threatens Bitcoin's permissionless nature.
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