Bitcoin Explained - The Technical Side of Bitcoin Episode 98: Return of the OP_RETURN
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May 8, 2025 Aaron and Sjors dive into the proposal of removing the OP_RETURN limit in Bitcoin Core, exploring its implications for transaction management. The hosts humorously link life’s annoyances, like smoke alarms, to Bitcoin's technical aspects. They examine the evolution of OP_RETURN, the challenges of data storage on the blockchain, and how recent protocol changes impact decentralization. The discussion also touches on the philosophical debate of governance in Bitcoin, revealing the ongoing negotiation between innovation and established practices.
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What is OP_RETURN?
- OP_RETURN is a script opcode that stops script execution, allowing arbitrary data to be embedded in transactions.
- This opcode was not originally intended for storing data, but later repurposed to hold non-spendable information in the blockchain.
OP_RETURN vs Fake Public Keys
- Using fake public keys to embed data led to pollution of the UTXO set with unspendable outputs.
- OP_RETURN outputs allow data storage without bloating the UTXO set, improving network efficiency.
Origin of the 80-Byte Limit
- The 80-byte OP_RETURN limit was set to accommodate early protocols like Counterparty requiring about 60-70 bytes.
- This limit was a compromise to reduce UTXO pollution while allowing meta-protocol functionality.