Bitcoin’s core developers are facing a sharp divide over how much non-financial data should be allowed on the blockchain.
The debate has led to a proposal known as Bitcoin Improvement Proposal 444 (BIP-444). Authored by Dathon Ohm, the proposal suggests a temporary “Reduced Data” soft fork to limit the size of data fields in transactions.
It aims to prevent spam and potential legal issues tied to illegal data stored on-chain.
The proposal comes after the release of Bitcoin Core 30, which could redefine large data storage on Bitcoin as a legitimate feature.
Ohm warns this shift could invite misuse, allowing harmful or unlawful content to be embedded in the blockchain, a permanent and irreversible act that threatens both Bitcoin’s reputation and its decentralization.
Temporary rule window under BIP-444
Under BIP-444, new rules would apply from a yet-to-be-determined block height up to block 987,424.
The proposal would invalidate transactions with unusually large data scripts, specifically limiting script sizes to 34 bytes and capping OP_RETURN outputs at 83 bytes.
Payloads exceeding 256 bytes would also be rejected, except under specific conditions tied to existing standards like BIP16.
The proposed changes are temporary, expiring automatically unless renewed. This approach is designed to buy time while developers work on a more permanent, balanced solution.
The soft fork could activate proactively by early 2026 or reactively if illegal content appears on-chain, forcing a rollback of affected blocks.
Renewed debate over Bitcoin’s core principles
The BIP-444 proposal has reignited long-standing debates about Bitcoin’s purpose and resilience.
Supporters argue that without strict limits, node operators could face legal exposure for storing illicit data.
Critics counter that such restrictions may stifle innovation, potentially harming technologies like BitVM that rely on complex script structures.
This temporary measure mirrors earlier Bitcoin crises in 2010 and 2013, both resolved through emergency soft forks.
However, BIP-444 carries deeper implications, not just for Bitcoin’s code, but for the very principle of decentralization it was built upon.