The developers of Bitcoin Core have launched the second test version of their highly debated Bitcoin Core v30 update, which aims to introduce a new wallet format and non-monetary data inclusion by October.
A new release candidate for Bitcoin Core (v30.0rc2) has been made available for testing, as announced by the Bitcoin Core Project on Sunday, branding it a “new major release.”
This update transitions away from older legacy wallet infrastructure and introduces a more straightforward command system. Nonetheless, the key points of controversy center around policy adjustments for the OP_RETURN opcode, which allows for the embedding of arbitrary data in transactions.
The new limits on data remove the previous cap of 80 bytes, allowing for nearly limitless, or potentially up to around 4 megabytes of data per transaction output.
Bitcoin purists vs. maxis
Despite this, Bitcoin purists contend that the network should strictly serve financial transactions and not be utilized for data storage.
They argue that the extensive use of OP_RETURN can lead to permanent blockchain bloat since all Bitcoin nodes must retain this data, resulting in increased costs. This may also lead to an influx of spam and malicious content on the network.
On the other hand, Bitcoin maximalists assert that if users are willing to pay fees, they should be allowed to use block space as they see fit, with market forces acting to naturally deter nefarious usage through fees.
Related: Jimmy Song criticizes Bitcoin Core developers for a ‘fiat’ mentality regarding OP_Return
Bitcoin Core is endorsing the update, which is anticipated to roll out around late October, though the precise date is still subject to change due to ongoing testing and intense discussions among developers.
Nick Szabo weighs in on legal risks
Bitcoin pioneer Nick Szabo has returned to X after nearly five years, engaging actively and contributing to the ongoing debate on Sunday.
He noted that network fees, termed the “spam filter” by developer “calle,” serve to protect miners, but don’t present sufficient disincentives to safeguard full nodes.
“This has always been a problem, of course. But increasing the OP_RETURN allowance will likely exacerbate this issue. It will also heighten legal risks.”
He added, “It’s an open legal issue basically everywhere,” implying that nodes could potentially be held accountable for harmful data stored on the blockchain.
A court case brought to attention by crypto litigator Joe Carlasare determined that node operators are not liable if they lack knowledge or control over the data.
Szabo mentioned that one line of argument is centered around the notion that data can be concealed in other formats, while OP_RETURN data is prunable. “This suggests that permitting larger volumes of data on OP_RETURN may conceivably reduce legal risks.”
Conversely, he argued that illegal content presented in a conventional format, which is easily accessible through standard software, “is more likely to catch the attention of lawyers, judges, and jurors, and thus is legally more perilous, compared to data that has been fragmented or concealed and requires specialized software for reconstruction,” he stated.
There are some who believe that the cypherpunk Szabo is the pseudonymous creator of Bitcoin, Satoshi Nakamoto; however, he has continually denied this. Recently, Szabo took on the role of chief scientist at Samson Mow’s Bitcoin infrastructure firm Jan3 in January.
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