Bitcoin Core released its significant version 30 update on Saturday, igniting a split within the Bitcoin community concerning the extreme increase in the OP_RETURN data capacity.

The primary enhancements of Bitcoin Core 30.0 include the introduction of optional encrypted connections between nodes for improved privacy and a substantial raise in the OP_RETURN data limit from 80 to 100,000 bytes. This change permits a far greater volume of non-financial data to be integrated into Bitcoin transactions.

“With the release of this new major version, versions 27.x and older will no longer receive updates,” stated the announcement.

While the update contained bug fixes, performance boosts, and modifications to fee structures, the most contentious topic that has emerged is the hike in the OP_RETURN limit. This dramatic increase paves the way for the development of more advanced decentralized applications on the network, stirring dissatisfaction among Bitcoin purists who contend that the network should be exclusively leveraged for financial transactions.

New Blocksize Wars

Although this is not a protocol amendment, the ongoing discussion resurrects memories of the block size wars of 2017, which culminated in a Bitcoin hard fork to create Bitcoin Cash.

Certain individuals, like Alex Bergeron from Ark Labs, perceive the update positively. He mentioned on X that he plans to utilize the added OP_RETURN space to enhance Bitcoin’s capabilities, likening it to Ethereum but with improvements.

Community Feedback: Jameson Lopp, a co-founder of CasaHODL, is an advocate for Bitcoin Core v30, while Pavol Rusnak, the Satoshi Labs co-founder, expressed his support due to his appreciation for the development team’s rigor and sound engineering judgment.

Nonetheless, some members of the community voiced their concerns, arguing that this change contradicts Bitcoin’s essential tenets as a peer-to-peer cash system, potentially resulting in blockchain congestion, inflated node operation expenses, and legal dilemmas.

As a workaround, numerous node operators have turned to alternative software called “knots,” which allows for the enforcement of strict data size restrictions of 80 bytes.

Nick Szabo highlighted potential legal ramifications of the data limit increase, warning that node operators could be liable for hosting illegal content. Luke Dashjr, the creator of knots, has refrained from commenting on the update but has previously expressed critiques of Bitcoin Core’s recent modifications.

Data indicates that a considerable portion of node operators are now using Knots software, with current statistics showing 5,114 Knots nodes, comprising 21.48% of all Bitcoin nodes.