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Reading: Support Grows for Bitcoin Proposal to Limit Transaction Data Amid Decentralization Concerns
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Bitcoin

Support Grows for Bitcoin Proposal to Limit Transaction Data Amid Decentralization Concerns

News Desk
Last updated: January 25, 2026 10:30 am
News Desk
Published: January 25, 2026
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Support is on the rise for a Bitcoin proposal aimed at imposing temporary limits on the amount of data that can be embedded in transactions, reflecting an ongoing debate concerning network spam and node decentralization. Bitcoin Improvement Proposal 110 (BIP-110) has garnered early backing, with 583 Bitcoin nodes signaling their support for a cap on transaction data.

The proposal seeks to reverse recent alterations made to Bitcoin Core, particularly changes from version 30, which was released in October 2025 and eliminated the established 83-byte limit on OP_RETURN data. This script allows users to embed arbitrary information in transactions, which has sparked controversy within the Bitcoin community. Critics argue that the removal of these limits contributes to blockchain spam and poses risks to the decentralization of the network.

The current wave of support for BIP-110 represents about 2.38% of the network, with most backers running Bitcoin Knots—an alternative node implementation commonly preferred by operators critical of Bitcoin Core’s recent updates. The proposal puts forth a specific plan to temporarily reintroduce stricter limits at a consensus level: capping transaction output sizes at 34 bytes and minimizing OP_RETURN data to 83 bytes. This soft fork would be set to last for one year, after which the limits may be extended, modified, or allowed to lapse.

The BIP-110 proposal is seen by its supporters as a temporary fix to curb excessive data use, ensuring that the network can assess the implications of restoring limits without committing to permanent changes. Advocates contend that stricter data limits are essential for preventing spam and preserving the decentralization of Bitcoin nodes. They emphasize concerns regarding how larger data payloads could escalate storage and bandwidth requirements, potentially making it cost-prohibitive for everyday users to run full nodes. Increased operational costs for nodes could lead to greater centralization, a deviation from one of Bitcoin’s core values: the ability for individuals to verify the network using consumer-grade hardware.

Critics of the recent changes to Bitcoin Core express worries that unchecked data usage could threaten the network’s infrastructure, with Bitcoin educator Matthew Kratter labeling excessive spam as a parasitic threat. He suggests that overwhelming the network with such activity could diminish Bitcoin’s resilience in the long run.

However, there are dissenting voices within the community, including Bitcoin Core contributor Jameson Lopp, who defends the removal of OP_RETURN limits. He contends that imposing artificial caps does little to deter spam and may instead push unwanted activity into other areas of the protocol, asserting that market fees should dictate how block space is utilized.

As the debate over BIP-110 continues, the Bitcoin community remains divided on the best path forward in ensuring the network’s longevity and integrity while balancing the need for innovation and proper resource management.

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