Growing Network Support for BIP-110 Highlights Bitcoin's Transaction Output Size Debate

Bitcoin nodes are increasingly backing BIP-110, with support now reaching 2.38% of the network. According to Cointelegraph’s reporting, approximately 583 out of 24,481 active nodes currently operate this implementation, primarily through Bitcoin Knots software. The proposal establishes specific technical constraints: capping transaction outputs at 34 bytes and limiting OP_RETURN data to 83 bytes. Unlike permanent protocol changes, BIP-110 functions as a temporary soft fork with a one-year duration, after which the community can vote on extending or modifying the restrictions.

Understanding the Size Specifications Behind BIP-110

The 110 designation and its associated size limits emerged in response to ongoing network concerns. These output restrictions directly target the OP_RETURN script function, which allows arbitrary data embedding on the blockchain. Bitcoin Core’s version 30 release, which went live in late 2025, removed the previous 83-byte cap that had governed OP_RETURN operations—a change that ignited substantial community friction. The original pull request for this modification appeared earlier in 2025 and sparked immediate resistance from network participants worried about potential consequences.

The Storage and Centralization Trade-Off

Critics contend that eliminating size constraints on arbitrary data creates meaningful problems for network participants. Every additional byte of non-essential information increases the storage burden on node operators, raising the computational costs of maintaining Bitcoin infrastructure. Since Bitcoin’s fundamental appeal lies in its accessibility—nodes can run on standard personal computers rather than specialized equipment—larger data requirements pose a genuine threat to this value proposition. The concern centers on a cascading effect: as storage demands climb, fewer individuals can afford to operate independent nodes, gradually pushing the network toward centralization.

Bitcoin advocate Matthew Kratter painted a vivid metaphor for this risk, comparing excessive data to a parasitical organism choking out a host tree. The analogy captures how unchecked data bloat could undermine Bitcoin’s decentralized foundation.

Competing Visions on Data Limits

Not everyone shares this perspective. Jameson Lopp, a prominent Bitcoin Core contributor, advocates for maintaining the uncapped OP_RETURN approach. His argument hinges on a technical assessment: he believes filtering mechanisms prove ineffective at preventing spam regardless of size constraints. From this viewpoint, attempting to regulate output dimensions through protocol rules addresses a symptom rather than the underlying problem.

This philosophical divergence reflects a broader tension within Bitcoin development—balancing accessibility against flexibility, and weighing security considerations against network participation barriers.