Bitcoin’s Next Upgrade Triggers Concern From Longtime Cryptography Expert

Bitcoin 2025-09-30 00:40

Bitcoin’s Next Upgrade Triggers Concern From Longtime Cryptography Expert

Nick Szabo has reappeared on social media after nearly five years of silence - and his first message was a warning.

The cryptography pioneer, often rumored to be Satoshi Nakamoto, argued that Bitcoin could be opening itself to fresh legal hazards with the upcoming Bitcoin Core v30 update.

Szabo’s concern centers on OP_RETURN, the feature that lets users attach non-monetary data to Bitcoin transactions. Developers are preparing to remove long-standing limits, meaning blocks could soon carry far more than financial records. “Increasing the OP_RETURN allowance will likely make this problem worse,” Szabo wrote, pointing out that nodes – unlike miners – may find themselves on the hook for harmful or illegal content embedded into the blockchain.

Why OP_RETURN Is Splitting the Community

The debate cuts deep into Bitcoin’s philosophy. One camp insists the network should remain a pure payments system, stripped of unnecessary baggage. They warn that expanding data usage will permanently bloat the blockchain, raise costs for operators, and invite spam.

On the other side are maximalists who see block space as a free market. Their argument is simple: if users pay the fee, they should decide how to use it. To them, the fee system itself acts as a natural filter against abuse.

What the Upgrade Changes

Lost in the noise is the fact that Bitcoin Core v30 also includes a new wallet format and a streamlined command system, retiring parts of the legacy codebase. A second test build has already been published, with developers tentatively eyeing late October for rollout – though debates inside the community could delay the timeline.

While the technical refinements are important, OP_RETURN has become the flashpoint. By lifting the 80-byte cap that has existed for years, the door opens to transaction outputs that could approach 4 megabytes of arbitrary data.

A Fight Over Bitcoin’s Identity

Szabo acknowledged that illegal data can already be hidden inside Bitcoin, but warned that standardized, visible formats could strengthen courtroom arguments against node operators. His intervention highlights how contentious the issue has become – not just technically, but legally and philosophically.

Whether Bitcoin should be a minimalist ledger for money or a general-purpose record-keeping system is a battle that has simmered for years. Bitcoin Core v30 doesn’t just revive that fight – it raises the stakes, with one of the ecosystem’s most influential thinkers now stepping back into the fray.

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This content is for informational purposes only and does not constitute investment advice.

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