Cardano Founder Backs Conversation on Enhancing Bitcoin Messaging Capabilities

Cardano founder and IOG CEO Charles Hoskinson recently joined the conversation around enhancing Bitcoin messaging capabilities via the OP_RETURN functionality.

The conversation emerged after a Cardano DRep, “Psiloblox,” raised concerns about the lack of OP_Return support in most Bitcoin wallets. It highlighted missed opportunities for users to attach messages to Bitcoin transactions. In response, Hoskinson described the critique as “interesting.”

Notably, the context of the conversation is the Cardano native wallet, Lace, adding Bitcoin support. Given the significance, Cardano proponents like Psiloblox are lauding the move and highlighting weaknesses in other wallet services.

https://t.co/PU7h5btwlj pic.twitter.com/bQ0LE3OYP2

— Charles Hoskinson (@IOHK_Charles) April 29, 2025

Growing Interest in OP_Return Applications

In the tweet, Psiloblox explained that most Bitcoin wallets do not utilize OP_Return, one of Bitcoin’s few non-financial features. He emphasized the feature’s potential by sharing a previous personal experience requesting a new function in the Bitkit wallet.

Specifically, Psiloblox suggested allowing users to add a message field, automatically converting it into HEX format for easier use. He pointed to the Moonshine wallet as an example.

As a result, Psiloblox argued that such an enhancement could set wallets apart from others lacking this support. He had also proposed integrating a QR code scanning feature for OP_Return fields to boost usability further.

Bitcoin Developers Push to Remove OP_Return Data Limits

Meanwhile, some Bitcoin developers are pursuing changes that could expand OP_Return’s capabilities even further. One example is developer Peter Todd, who acknowledged two years of attempts to curb data storage abuse.

Why is everyone seemingly losing their minds about modifying OP_Return, as first discussed by @peterktodd and @darosior??

Come with me on a brief journey into developer land to try to understand…

(also, please correct me if I misstate something here!)

1/🧵 pic.twitter.com/1snI6Tbm5v

— Rob Warren (@BikesandBitcoin) April 28, 2025

This request proposes eliminating the 80-byte limit on OP_Return data, a measure initially intended to discourage spam.

Todd’s initiative draws on a formalization effort led by Chaincode Labs’ Antoine Poinsot. It encourages developers who view the current restriction as unnecessary to test and evaluate the proposed adjustments. They believe lifting the limit could open new possibilities for Bitcoin transactions while reflecting ongoing use trends.

However, despite earlier efforts to limit OP_Return data size, users have continued to find workarounds.

Opposing OP_Return Data Storage Proposals

Luke Dashjr, a vocal opponent of arbitrary data storage through Bitcoin’s OP_Return feature, criticized the recent proposals as “utter insanity,” gaining traction within parts of the developer community.

Defending Bitcoin’s limited blockspace for strictly financial transactions, Dashjr argued that the network has already suffered over two years of “attacks” by arbitrary data “spammers.”

He emphasized that the continued hands-off approach is unsustainable, stating that the “damage” already inflicted should be sufficient proof. He also questioned whether he was “the only one left” who genuinely cares about Bitcoin’s long-term survival.