Bitcoin Network Records 4 MB Block Due to… NFTs

The Bitcoin network has just recorded a massive 4 MB transaction block—four times the usual limit—due to the recent NFT craze.

As previously reported by Coin68, the Bitcoin community has been debating the network's primary use case—whether it should remain a payment system or expand its role.

The issue started with Ordinals, a new protocol on Bitcoin that allows users to encode images and store data on the blockchain, essentially turning them into NFTs similar to those on Ethereum. Many users have begun minting NFTs, causing Bitcoin's block sizes to approach their limits as they accommodate the increased data volume.

By the early hours of February 2, it was discovered that the Bitcoin network had mined a 4 MB block, quadrupling the usual 1 MB limit. As predicted, nearly the entire block size was occupied by a transaction containing an NFT-encoded image. This has been declared the largest Bitcoin block and heaviest Bitcoin transaction in history.

Luxor, the mining pool that mined this block, tweeted:

“Behold, this is Taproot Wizard, freed from constraints.

He represents the mind and hardware memory of all Bitcoin node operators around the globe.

He refuses to be censored, refuses to be silenced.”

Luxor appears to support the "progressive" side of the debate on allowing NFTs on Bitcoin, arguing that it enhances BTC's utility, attracts users, and generates more transaction fees for miners.

Conversely, the "conservative" faction, including Bitcoin developers and early adopters, believes Bitcoin's sole purpose is to serve as currency for payments—true to Satoshi Nakamoto's original whitepaper. They argue that adding image data to the blockchain wastes block space and raises fees for other users.

As a result, they are calling for Bitcoin nodes to "censor" and block Ordinals transactions, reigniting the debate over censorship in crypto—a debate that flared up with the U.S. sanctions on Tornado Cash, leading some DeFi protocols on Ethereum to comply and face criticism from the Bitcoin community.

Taproot Wizard is an initiative by Luxor and investor Udi Wertheimer, a prominent figure in the Bitcoin community. The project is expected to evolve, with a Discord channel available and hints about upcoming updates.

On Twitter, several crypto influencers have voiced their support for Taproot Wizard, tweeting about the hash of the NFT-containing transaction.