The debate began when Cardano DRep “Psiloblox” raised an issue about Bitcoin wallets. He pointed out that most of them fail to support OP_Return, a key feature that allows users to add messages to transactions. Psiloblox criticized this gap, calling it a missed opportunity for Bitcoin’s non-financial use.
Cardano founder Charles Hoskinson found the concern “interesting.” His response came as Cardano’s native wallet, Lace, added support for Bitcoin. Cardano supporters, including Psiloblox, praised the move and used it to spotlight flaws in other wallet services.
Psiloblox Proposes New Wallet Features
In a tweet, Psiloblox explained that few Bitcoin wallets use OP_Return effectively. He shared a personal story where he asked Bitkit to include a message field that converts text into HEX format. This small change, he argued, could significantly improve usability.
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He also cited the Moonshine wallet as a positive example. Psiloblox believes that adding this feature would make wallets more competitive. To strengthen the idea, he recommended including a QR code scanning option for OP_Return messages.
Some Bitcoin developers now want to enhance OP_Return further. Developer Peter Todd acknowledged years of efforts to prevent OP_Return abuse. Despite restrictions, users still find ways to use the feature.
Currently, OP_Return has an 80-byte data cap to prevent spam. However, Todd and others argue that removing this limit could enable broader uses. Antoine Poinsot of Chaincode Labs supports this effort, urging developers to test and give feedback.
Strong Opposition from Bitcoin Purists
Not everyone agrees. Luke Dashjr, a well-known Bitcoin core developer, strongly opposes expanding OP_Return. He called the recent proposals “utter insanity.”
Dashjr insists Bitcoin’s blockspace must remain strictly for financial transactions. He claimed that allowing arbitrary data amounts to “attacks” on the network. He also warned that the current tolerance toward OP_Return abuse is harmful.
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In his view, the damage already done should prompt a policy change. Dashjr closed by questioning whether he was alone in caring about Bitcoin’s long-term health.
The OP_Return debate reveals a deep divide in the Bitcoin community. While some push for broader use cases and wallet upgrades, others call for stricter limits. With Cardano entering the conversation, the pressure to modernize Bitcoin’s messaging features could grow.
