diff --git a/base_layer/core/src/consensus/consensus_constants.rs b/base_layer/core/src/consensus/consensus_constants.rs
index a561c1ea46..6a2c4d58d4 100644
--- a/base_layer/core/src/consensus/consensus_constants.rs
+++ b/base_layer/core/src/consensus/consensus_constants.rs
@@ -402,7 +402,7 @@ impl ConsensusConstants {
             faucet_value: 0.into(),
             transaction_weight: TransactionWeight::latest(),
             max_script_byte_size: 512,
-            max_extra_encrypted_data_byte_size: 256,
+            max_extra_encrypted_data_byte_size: 240,
             input_version_range,
             output_version_range,
             kernel_version_range,
diff --git a/base_layer/core/src/consensus/consensus_encoding/bytes.rs b/base_layer/core/src/consensus/consensus_encoding/bytes.rs
index 9a87dcefec..3bd0eff08a 100644
--- a/base_layer/core/src/consensus/consensus_encoding/bytes.rs
+++ b/base_layer/core/src/consensus/consensus_encoding/bytes.rs
@@ -20,11 +20,19 @@
 //  WHETHER IN CONTRACT, STRICT LIABILITY, OR TORT (INCLUDING NEGLIGENCE OR OTHERWISE) ARISING IN ANY WAY OUT OF THE
 //  USE OF THIS SOFTWARE, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGE.
 
-use std::{cmp, convert::TryFrom, ops::Deref};
+use std::{
+    cmp,
+    convert::TryFrom,
+    ops::{Deref, DerefMut},
+};
 
 use borsh::{BorshDeserialize, BorshSerialize};
 use serde::{Deserialize, Serialize};
-use tari_utilities::hex::{from_hex, HexError};
+use tari_utilities::{
+    hex::{from_hex, HexError},
+    ByteArray,
+    ByteArrayError,
+};
 
 #[derive(
     Debug,
@@ -118,6 +126,27 @@ impl<const MAX: usize> Deref for MaxSizeBytes<MAX> {
     }
 }
 
+impl<const MAX: usize> DerefMut for MaxSizeBytes<MAX> {
+    fn deref_mut(&mut self) -> &mut Self::Target {
+        &mut self.inner
+    }
+}
+
+impl<const MAX: usize> ByteArray for MaxSizeBytes<MAX> {
+    /// Try and convert the given byte array to a MaxSizeBytes. Any failures (incorrect array length,
+    /// implementation-specific checks, etc) return a [ByteArrayError](enum.ByteArrayError.html).
+    fn from_canonical_bytes(bytes: &[u8]) -> Result<Self, ByteArrayError> {
+        Self::from_bytes_checked(bytes).ok_or(ByteArrayError::ConversionError {
+            reason: "Invalid byte length".to_string(),
+        })
+    }
+
+    /// Return the NodeId as a byte array
+    fn as_bytes(&self) -> &[u8] {
+        self.inner.as_ref()
+    }
+}
+
 #[derive(Debug, thiserror::Error)]
 pub enum MaxSizeBytesError {
     #[error("Invalid Bytes length: expected {expected}, got {actual}")]
diff --git a/base_layer/core/src/transactions/transaction_components/encrypted_data.rs b/base_layer/core/src/transactions/transaction_components/encrypted_data.rs
index a3329e9fa2..183ecc0f4b 100644
--- a/base_layer/core/src/transactions/transaction_components/encrypted_data.rs
+++ b/base_layer/core/src/transactions/transaction_components/encrypted_data.rs
@@ -26,7 +26,7 @@
 //! Encrypted data using the extended-nonce variant XChaCha20-Poly1305 encryption with secure random nonce.
 
 use std::{
-    convert::TryInto,
+    convert::{TryFrom, TryInto},
     fmt,
     fmt::{Display, Formatter},
     mem::size_of,
@@ -60,14 +60,14 @@ use thiserror::Error;
 use zeroize::{Zeroize, Zeroizing};
 
 use super::EncryptedDataKey;
-use crate::transactions::tari_amount::MicroMinotari;
-
+use crate::{consensus::MaxSizeBytes, transactions::tari_amount::MicroMinotari};
 // Useful size constants, each in bytes
 const SIZE_NONCE: usize = size_of::<XNonce>();
 const SIZE_VALUE: usize = size_of::<u64>();
 const SIZE_MASK: usize = PrivateKey::KEY_LEN;
 const SIZE_TAG: usize = size_of::<Tag>();
 pub const STATIC_ENCRYPTED_DATA_SIZE_TOTAL: usize = SIZE_NONCE + SIZE_VALUE + SIZE_MASK + SIZE_TAG;
+const MAX_ENCRYPTED_DATA_SIZE: usize = 256 + STATIC_ENCRYPTED_DATA_SIZE_TOTAL;
 
 // Number of hex characters of encrypted data to display on each side of ellipsis when truncating
 const DISPLAY_CUTOFF: usize = 16;
@@ -75,7 +75,7 @@ const DISPLAY_CUTOFF: usize = 16;
 #[derive(Debug, Clone, Deserialize, Serialize, PartialEq, Eq, Hash, BorshSerialize, BorshDeserialize, Zeroize)]
 pub struct EncryptedData {
     #[serde(with = "tari_utilities::serde::hex")]
-    data: Vec<u8>,
+    data: MaxSizeBytes<MAX_ENCRYPTED_DATA_SIZE>,
 }
 
 #[derive(Debug, Clone, Deserialize, Serialize, PartialEq, Eq)]
@@ -185,7 +185,10 @@ impl EncryptedData {
         data[SIZE_TAG + SIZE_NONCE..SIZE_TAG + SIZE_NONCE + SIZE_VALUE + SIZE_MASK + payment_id.get_size()]
             .clone_from_slice(bytes.as_slice());
 
-        Ok(Self { data })
+        Ok(Self {
+            data: MaxSizeBytes::try_from(data)
+                .map_err(|_| EncryptedDataError::IncorrectLength("Data too long".to_string()))?,
+        })
     }
 
     /// Authenticate and decrypt the value and mask
@@ -235,19 +238,22 @@ impl EncryptedData {
                 bytes.len()
             )));
         }
-        let mut data = vec![0; bytes.len()];
-        data.copy_from_slice(bytes);
-        Ok(Self { data })
+        Ok(Self {
+            data: MaxSizeBytes::from_bytes_checked(bytes)
+                .ok_or(EncryptedDataError::IncorrectLength("Data too long".to_string()))?,
+        })
     }
 
     #[cfg(test)]
     pub fn from_vec_unsafe(data: Vec<u8>) -> Self {
-        Self { data }
+        Self {
+            data: MaxSizeBytes::from_bytes_checked(data).unwrap(),
+        }
     }
 
     /// Get a byte vector with the encrypted data contents
     pub fn to_byte_vec(&self) -> Vec<u8> {
-        self.data.clone()
+        self.data.clone().into()
     }
 
     /// Get a byte slice with the encrypted data contents
@@ -290,11 +296,11 @@ impl Hex for EncryptedData {
         to_hex(&self.to_byte_vec())
     }
 }
-
 impl Default for EncryptedData {
     fn default() -> Self {
         Self {
-            data: vec![0; STATIC_ENCRYPTED_DATA_SIZE_TOTAL],
+            data: MaxSizeBytes::try_from(vec![0; STATIC_ENCRYPTED_DATA_SIZE_TOTAL])
+                .expect("This will always be less then the max length"),
         }
     }
 }
diff --git a/base_layer/core/src/validation/block_body/test.rs b/base_layer/core/src/validation/block_body/test.rs
index 9e16a1b2b0..68499989dc 100644
--- a/base_layer/core/src/validation/block_body/test.rs
+++ b/base_layer/core/src/validation/block_body/test.rs
@@ -437,7 +437,7 @@ async fn it_limits_the_encrypted_data_byte_size() {
     let (txs, _) = schema_to_transaction(&[schema1], &blockchain.km).await;
     let mut txs = txs.into_iter().map(|t| Arc::try_unwrap(t).unwrap()).collect::<Vec<_>>();
     let mut outputs = txs[0].body.outputs().clone();
-    outputs[0].encrypted_data = EncryptedData::from_vec_unsafe(vec![0; STATIC_ENCRYPTED_DATA_SIZE_TOTAL + 257]);
+    outputs[0].encrypted_data = EncryptedData::from_vec_unsafe(vec![0; STATIC_ENCRYPTED_DATA_SIZE_TOTAL + 250]);
     txs[0].body = AggregateBody::new(txs[0].body.inputs().clone(), outputs, txs[0].body.kernels().clone());
     let (block, _) = blockchain.create_next_tip(block_spec!("B", transactions: txs)).await;