Bitcoin Core v30 vs Knots: What's Really at Stake - Securities.io

Bitcoin faces a pivotal moment as developers clash over Core v30, a software update scheduled for October that would significantly expand the OP_RETURN data storage limit from 83 bytes to potentially 4 MB per transaction.

This technical change has reignited fundamental debates about Bitcoin's purpose and future direction. Supporters argue the expansion enables new use cases beyond simple transactions, such as NFTs and document storage, while maintaining that users who pay for block space should control their data. Critics, led by Bitcoin Knots maintainer Luke Dashjr, warn this threatens Bitcoin's core function as digital money by potentially enabling spam attacks and increasing node requirements, making the network less accessible.

• Bitcoin Knots adoption has surged from under 400 to over 4,900 nodes this year, now representing 20.7% of the network as operators seek stricter data policies
• The debate echoes 2017's block size war that created Bitcoin Cash, though current tensions are unlikely to trigger an immediate fork
• Core v30's rollout introduces uncertainty that could impact Bitcoin's $2.25 trillion market cap, despite strong institutional support cushioning potential volatility
• The controversy highlights Bitcoin's decentralized governance strength, where no single entity controls protocol changes and community consensus drives development