A new Bitcoin Improvement Proposal (BIP), BIP-444, calls for a temporary soft fork that would sharply limit how non-monetary data is stored on the Bitcoin network.
The move follows Bitcoin Core v30, which effectively removed the byte cap for OP_RETURN data if fees are paid. Only about 6.3% of reachable nodes run v30 today, per Bitnodes.
While a complex topic, BIP-444 is essentially a proposal to pause big data on Bitcoin for about a year. It would shrink the allowed extra data to something tiny. Think “a short note,” not images or files. So, this “pause” is a soft fork.
In plain terms: if enough computers adopt the new rules, they will reject transactions that include big data. Normal sends and receives still work. Computers that don’t upgrade can keep running, but their big-data transactions won’t get accepted by upgraded ones.
For the more technical users out there, BIP-444 would cap OP_RETURN data at 83 bytes and most other places people hide data at 34 bytes. That blocks things like large inscriptions and other big blobs. Again, it’s a temporary soft fork, so upgraded nodes reject oversized data while the rest of the network keeps running.
It also constrains embedded Merkle trees in Taproot outputs, and forbids OP_IF inside Tapscripts, which would disable Ordinals-style inscriptions.
In any case, how is the Bitcoin community feeling about this? Well, supporters frame the change as a defensive measure to preserve scarce block space for payments and to lower legal exposure if illicit content is embedded on-chain. They argue that forcing node operators to relay or store illegal material could deter validation and push the network toward centralisation.
Longtime Bitcoin Core developer Luke Dashjr has signaled support and describes the draft as a simple stopgap, while denying authorship:
This isn’t intended to be an ideal solution, only good enough and super simple to buy time to design a long term solution.
Luke Dashjr, Bitcoin Core Developer. Critics counter that arbitrary data has been part of Bitcoin since the beginning and that any fee-paying, consensus-valid transaction should be relayable. Ordinals advocate Leonidas says miners and pools controlling a majority of hash rate will include any such transactions. He stated that “any serious attempt by Bitcoin core” to tighten policy rules will be “met with decisive action”.
The bottom line is that the real fight is about purpose. One side wants Bitcoin focused on money, the other sees it as a censorship-resistant ledger for many uses. BIP-444 asks for a one-year pause to figure out a long-term answer.
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The post Bitcoin’s New BIP-444 Sparks Fierce Clash Over Data Limits and Legal Risks appeared first on Crypto News Australia.
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