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Is Bitcoin becoming an altcoin? OP_Return change divides the community

2min Read

Bitcoin Core dev Luke Dashjr called the OP_Return proposal “insanity” as debate heats up.

Is Bitcoin becoming an altcoin? OP_Return change divides the community
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  • The Bitcoin community was divided on removing the 80-byte limit on OP_Return. 
  • Supporters considered it an efficiency upgrade, while others termed it a ‘spam.’

The Bitcoin [BTC] community has been rocked by an intense division over removing limits on OP_Return. The proposal allows for more arbitrary data on the blockchain, like messages and images. 

Some, like Jason Hughes, VP of engineering at BTC-focused Ocean Mining, strongly opposed the proposal and viewed it as a way to turn “Bitcoin into a worthless altcoin.” He said

“Bitcoin Core developers are about to merge a change that turns Bitcoin into a worthless altcoin, and no one seems to care to do anything about it.” 

Those opposed to the change, like Hughes, termed the move as an ‘attack on the network’ and claimed that it could mark the ‘death’ of Bitcoin. 

OP_Return sows division

In a separate mailing list on the same issue, Luke Dash Junior, a BTC core developer and network purist, called the change ‘utter insanity.’

“But this idea is utter insanity. Disappointing to see positive responses, and not one sensible reply calling it out yet… If attackers continue to bypass filters, we can go back to a full whitelist approach.” 

Dash is known for opposing Bitcoin Ordinals and other arbitrary data being added to the network. Like Hughes, he has long viewed them as an ‘attack’ and ‘spam’ on the BTC network.

The OP_Return currently allows 80 bytes of data (messages and other metadata). Some viewed the feature as crucial for sidechains, hence, efficiency and cleaning the Bitcoin base layer. 

The 80-byte limit, according to developers, was meant to limit harmful data from entering Bitcoin. That’s why others opposed it, as increasing the size might increase ‘spam.’

However, Peter Todd, one of the OP_Return supporters, cited the proposal’s efficiency benefit. 

“Entities are using unspendable outputs in liu of OP_Return outputs. Precisely because of the size limit. This increases the UTXO set size unnecessarily, a harmful effect of having the arbitrary OP_Return output limitations.”

 In short, some projects used a workaround on OP_Return to have more data, which takes more space and bogs down Bitcoin. Removing the limit on OP_Return would solve this problem, per the supporters. 

OP_Return is almost similar to the deactivated OP_CAT, but some people want to reactivate it to increase Bitcoin usage.

It remains to be seen whether the community will adopt the proposal. In the meantime, BTC wasn’t affected by the drama and was valued at $94.6K. 

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Benjamin Njiri is a Crypto Analyst and Journalist at AMBCrypto who specializes in technical analysis and identifying emergent market trends. He excels at breaking down complex chart patterns and on-chain data to make them accessible and actionable for investors. His rigorous analytical approach is founded on his academic background as a Telecommunication Engineering graduate. This discipline has equipped him with an expert understanding of signal processing and data analysis, allowing him to systematically filter market noise from true trend signals with engineering precision. Armed with this unique perspective, Benjamin focuses on providing clear, data-driven insights into the digital asset landscape. His work is dedicated to demystifying the intricate world of cryptocurrencies, empowering readers to understand the forces that shape the market and to navigate it with greater confidence.
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