Bitcoin Core Debate: Should the OP_Return Limit Be Removed for Better Efficiency?

• BitMEX supports removing Bitcoin’s OP_Return limit to enhance mempool efficiency.
• Ordinals’ popularity highlights rising demand for non-financial blockchain uses.
• Removing the OP_Return limit could prevent mining centralization and improve block propagation.

The recent ongoing debate over the potential removal of the OP_Return policy limit in Bitcoin Core has raised concerns in the cryptocurrency community. With Bitcoin mining being industrialized, the proposal to eliminate the OP_Return limit has gained some support.

On the other hand, others argue that it could lead to unintended consequences. BitMEX Research argues that removing the OP_Return limit can make Bitcoin’s mempool more useful, allowing users to set appropriate Bitcoin transaction fees and enhance the network functionality.

OP_Return Policy and Its Impact on Bitcoin’s Mempool

The OP_Return output type in Bitcoin Core is intended to hold arbitrary data in Bitcoin’s blockchain. Bitcoin Core currently has an OP_Return output size restriction, which prevents nodes from propagating transactions that exceed the limit.

However, this is not a consensus rule, and blocks with such transact…

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