Bitcoin Core v30 Update Sparks Debate Over Data Inclusion and Legal Risks

According to Cointelegraph, Bitcoin Core developers have introduced the second test version of the Bitcoin Core v30 update, which is anticipated to bring significant changes, including a new wallet format and the inclusion of non-monetary data, expected to be implemented in October. The latest release candidate, Bitcoin Core v30.0rc2, was announced by the Bitcoin Core Project as a major update. This update aims to phase out older legacy wallet infrastructure and simplify the command system. However, the primary controversy revolves around policy changes concerning the OP_RETURN opcode, which permits embedding arbitrary data in transactions. The update proposes expanding data limits, removing the default cap of 80 bytes to potentially up to nearly 4 megabytes per transaction output. The proposed changes have sparked a debate between Bitcoin purists and maximalists. Bitcoin purists argue that the network should solely facilitate financial transactions, not data storage. They express concerns that extensive use of OP_RETURN could bloat the blockchain, as every Bitcoin node would need to store this data, leading to increased costs. Additionally, there is a risk of the network being inundated with spam and malware. On the other hand, Bitcoin maximalists contend that users should have the freedom to utilize block space as they wish, provided they pay the necessary fees. They believe that market forces will naturally limit malicious usage through these fees. Despite the ongoing debates, Bitcoin Core is moving forward with the update, which is expected to be deployed by late October, although the exact date remains uncertain due to continued testing and discussions among developers. Bitcoin pioneer Nick Szabo has re-emerged on social media platform X after a nearly five-year absence to contribute to the ongoing debate. Szabo highlighted that while network fees act as a 'spam filter' for miners, they do not sufficiently deter full nodes from potential risks. He expressed concerns that increasing the OP_RETURN allowance could exacerbate these issues and heighten legal risks. Szabo pointed out that the legal implications of storing harmful data on the blockchain remain an open issue globally. A court case referenced by crypto litigator Joe Carlasare determined that node operators are not liable if they lack knowledge or control over the data. Szabo noted that while data can be concealed in various ways, OP_RETURN data is prunable, suggesting that allowing more data on OP_RETURN might reduce legal risks. However, he also acknowledged a counterargument that illegal content in a standard format could pose greater legal risks, as it is more accessible to standard software and thus more likely to attract legal scrutiny. Szabo, who some speculate to be Bitcoin's pseudonymous creator Satoshi Nakamoto, has denied such claims. He joined Samson Mow's Bitcoin infrastructure company Jan3 as chief scientist in January.