Nick Szabo Breaks Silence as Bitcoin Core v30 Update Sparks Fierce Debate
Bitcoin Core Developers Push Ahead with Controversial Upgrade
Bitcoin Core developers have released the second release candidate of the long-awaited Bitcoin Core v30 update, marking what they describe as a “new major release.” The update, now available for testing, is expected to roll out in late October, though the timeline remains flexible as discussions intensify.
The upgrade introduces a new wallet format, phases out older infrastructure, and simplifies command functions. However, the most heated debate centers on changes to the OP_RETURN opcode, which allows embedding arbitrary data in Bitcoin transactions.
Currently capped at 80 bytes, the update effectively removes the default limit-potentially enabling up to nearly 4 megabytes of non-monetary data per transaction output.
Purists vs. Maximalists: The Future of Bitcoin’s Block Space
The proposal has split the community. Bitcoin purists insist the blockchain should remain strictly a financial network, warning that unlimited OP_RETURN usage could permanently bloat the ledger, drive up storage costs, and open the door to spam or even malicious content.
On the other side, Bitcoin maximalists argue that as long as users pay fees, they should be free to use block space however they wish. They contend that economic incentives will naturally deter malicious activity, with higher fees acting as a built-in deterrent.
Nick Szabo Returns to Weigh In After Five Years
Cypherpunk and early Bitcoin pioneer Nick Szabo broke nearly five years of silence on X (formerly Twitter) to enter the debate. Szabo, often speculated to be the elusive Satoshi Nakamoto (though he has denied it), now serves as chief scientist at Samson Mow’s Bitcoin infrastructure firm Jan3.
Weighing in on the legal and technical risks, Szabo highlighted that while transaction fees serve as a “spam filter” for miners, they fail to protect full nodes from potential data overload.
“Increasing the OP_RETURN allowance will likely make this problem worse. It will also increase legal risks,” Szabo warned.
He noted that node operators could face legal exposure if harmful data is embedded directly into the blockchain. While courts have previously ruled that operators are not liable without direct control over the data, Szabo argued that openly viewable illegal content could still attract unwanted legal scrutiny.
Interestingly, he suggested that expanding OP_RETURN may paradoxically reduce risks compared to hidden data, since OP_RETURN data is prunable. But he cautioned that visible illegal content “is more likely to impress lawyers, judges, and jurors,” raising the stakes for Bitcoin’s decentralized network.
What Comes Next for Bitcoin Core v30
With testing still underway, the official rollout of Bitcoin Core v30 is tentatively expected in October. Whether the OP_RETURN policy changes survive final implementation will depend on how the developer community resolves the clash between preserving Bitcoin’s purity and expanding its utility.
As the debate intensifies, Szabo’s reemergence has amplified concerns that the update could reshape both the technical architecture and the legal landscape of Bitcoin.
