Bitcoin OP Return expansion 1250 times! Core v30 ignites community split.

Bitcoin Core v30 officially launched on October 12, increasing the Bitcoin OP Return embed data size from 80 bytes to a maximum of 100,000 bytes, expanding it by 1250 times, and under specific conditions, it can even approach 4 MB. Supporters see it as a key to unlocking NFT and Decentralized Finance, while opponents criticize it for raising node costs and bringing legal risks, with 21.48% of nodes having switched to Bitcoin Knots.

Bitcoin OP Return's largest update in history Core v30 officially launched

According to the Bitcoin Core official announcement, version 30 not only features performance optimizations and optional encrypted connections between nodes, but the core highlight is the significant relaxation of Bitcoin OP Return restrictions. In the past, to prevent infinite expansion of the blockchain, Bitcoin OP Return has always been locked at 80 bytes. The new version pushes the default value to 100,000 bytes and allows developers to include larger data in a single output.

This change is seen by supporters as the key to unlocking more on-chain applications, while opponents worry that it will raise node costs and bring legal risks, reminiscent of the debates during the "block size wars" of 2017. The expansion of Bitcoin OP Return has reached an astonishing 1250 times (from 80 bytes to 100,000 bytes), making it one of the most controversial updates in Bitcoin's history.

· Bitcoin OP Return technology upgrade detailed explanation

Core Update Content:

Legacy limit: 80 bytes

New default: 100,000 bytes

Maximum capacity: Approaching 4 MB under specific conditions.

Scaling multiple: 1250 times

Additional features: Encrypted connections can be selected between nodes, performance optimization.

Ark Labs ecosystem leader Alex Bergeron stated: "To fully utilize the additional Bitcoin OP Return space and use it to make Bitcoin more like Ethereum, and better."

He believes that relaxing restrictions could pave the way for Layer 2 technologies such as NFT, Decentralized Finance, and even zk-proofs. This means that Bitcoin OP Return will no longer be just a simple data tagging function, but can carry more complex smart contract logic and decentralized applications.

The opposition raises three major concerns: Bitcoin OP Return triggers legal panic

Purists have raised three major concerns regarding the Bitcoin OP Return expansion. These worries are not unfounded; they directly point to the core issues of Bitcoin's decentralized nature.

First: Node costs soaring threaten decentralization

The explosive growth of on-chain data may lead to a surge in the costs of full node hard drives and bandwidth, weakening decentralization. When the Bitcoin OP Return space expands from 80 bytes to 100,000 bytes, the amount of non-transactional data that a single block can accommodate will significantly increase, resulting in:

Rising storage costs: Full nodes require more hard drive space

Increased bandwidth demand: Extended time required for synchronous blockchain.

Small node exit: Individual operators may give up due to costs.

Second: Competition for Block Space Drives Up Transaction Fees

Block space occupied by non-financial data may drive up transaction fees and harm the everyday payment experience. The extensive use of Bitcoin OP Return will compete with normal transactions for limited block space, resulting in:

Daily payment users need to pay higher transaction fees.

The feasibility of small transactions has decreased.

The positioning of Bitcoin as a payment tool has been damaged.

Third: Legal risks become the biggest concern

The legal aspect is the most headache-inducing. Cryptographer Nick Szabo warned on X platform that if someone uploads illegal content via Bitcoin OP Return, such as CSAM (Child Sexual Abuse Material), node operators may face prosecution. He urged:

"As a (hopefully) temporary measure, run Knots. I strongly advise against upgrading to Core v30."

This warning is not alarmist. Once Bitcoin OP Return can carry a large amount of data, theoretically any content could be written to the blockchain, including:

1. Illegal images or videos

2. Infringing Content

3. Politically Sensitive Information

4. Other illegal materials

Due to the immutable nature of blockchain, once this content is on-chain, it cannot be deleted, which may expose node operators to legal liabilities.

Support PI Counterattack: Bitcoin OP Return Should Be Determined by the Market

Supporters rebut that the use of Bitcoin OP Return should be determined by the fee market rather than artificially restricted. Pavol Rusnak, co-founder of Satoshi Labs, believes that the Core team has a mature development process and peer review, and that the engineering judgment of v30 is "rational and robust."

· Market Mechanism Self-Regulation Argument

Support for PI Core Discussion:

Market adjustment of fees: Those willing to pay higher fees will naturally obtain space.

Technical Advantage: Bitcoin OP Return data can be pruned by nodes, resulting in a lower long-term burden than hiding data in a fake public key.

Application Innovation: If the demand for NFTs, Rollups, etc. is strong, the market will balance itself.

Natural elimination: If the market does not accept it, new features will withdraw on their own.

The data freedom faction argues that the expansion of Bitcoin OP Return is an inevitable result of technological progress. Compared to disguising data as transaction outputs (such as Ordinals, BRC-20, etc.), a clear Bitcoin OP Return marker is more beneficial for node management and data pruning.

Bitcoin Knots rises 21.48% Node rejects Bitcoin OP Return scaling

Dissatisfied members of the Core community have turned to support the alternative node software Bitcoin Knots. The project, led by Luke Dashjr, advocates for strict filtering of "on-chain garbage" and adheres to the principle of minimal data, clearly opposing the unlimited expansion of Bitcoin OP Return.

· Bitcoin Knots Data Statistics

According to BitRef statistics:

Knots Node Count: 5,114

Proportion of the entire network: 21.48%

Growth Trend: Data Continues to Rise

User Characteristics: Node operators with a tendency towards a conservative approach.

This struggle is not just a choice of code, but more like a vote on values: should Bitcoin become a universal data layer, or should it focus on peer-to-peer payments? The answer will influence the future flow of funds, talent, and computing power. The controversy over Bitcoin OP Return is essentially a fundamental discussion about Bitcoin's future positioning.

Bitcoin OP Return Controversy Impact and Future Outlook

After Trump's administration took office, the regulatory direction in the United States remains unclear. If legal risks are amplified, the conservative tendencies of node operators may accelerate, and on-chain applications will also be restricted. Conversely, if the regulatory framework allows for decentralized data storage, Bitcoin may usher in a new wave of development.

Possible Future Scenarios:

Optimistic scenario: Bitcoin OP Return becomes Layer 2, NFT, DeFi infrastructure.

Pessimistic scenario: Legal risks lead to a large number of nodes turning to Knots, resulting in substantial functional failure.

Neutral Context: Market Differentiation, Core and Knots Coexist Long-term

Regardless of the outcome, v30 has marked a dividing line in the history of Bitcoin development: the tug-of-war between the benefits of open data and the costs of decentralization will continue to test the community consensus mechanism. The next step is the market's expression, which is also the starting point for rethinking Bitcoin's positioning.