The cryptography pioneer, often rumored to be Satoshi Nakamoto, argued that Bitcoin could be opening itself to fresh legal hazards […] The post Bitcoin’s Next Upgrade Triggers Concern From Longtime Cryptography Expert appeared first on Coindoo.The cryptography pioneer, often rumored to be Satoshi Nakamoto, argued that Bitcoin could be opening itself to fresh legal hazards […] The post Bitcoin’s Next Upgrade Triggers Concern From Longtime Cryptography Expert appeared first on Coindoo.

Bitcoin’s Next Upgrade Triggers Concern From Longtime Cryptography Expert

2025/09/30 00:30

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.

READ MORE:

Everyone Is Betting Against the Dollar – What Happens If They’re Wrong?

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.

Source


The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.

The post Bitcoin’s Next Upgrade Triggers Concern From Longtime Cryptography Expert appeared first on Coindoo.

Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact service@support.mexc.com for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.

You May Also Like

The Channel Factories We’ve Been Waiting For

The Channel Factories We’ve Been Waiting For

The post The Channel Factories We’ve Been Waiting For appeared on BitcoinEthereumNews.com. Visions of future technology are often prescient about the broad strokes while flubbing the details. The tablets in “2001: A Space Odyssey” do indeed look like iPads, but you never see the astronauts paying for subscriptions or wasting hours on Candy Crush.  Channel factories are one vision that arose early in the history of the Lightning Network to address some challenges that Lightning has faced from the beginning. Despite having grown to become Bitcoin’s most successful layer-2 scaling solution, with instant and low-fee payments, Lightning’s scale is limited by its reliance on payment channels. Although Lightning shifts most transactions off-chain, each payment channel still requires an on-chain transaction to open and (usually) another to close. As adoption grows, pressure on the blockchain grows with it. The need for a more scalable approach to managing channels is clear. Channel factories were supposed to meet this need, but where are they? In 2025, subnetworks are emerging that revive the impetus of channel factories with some new details that vastly increase their potential. They are natively interoperable with Lightning and achieve greater scale by allowing a group of participants to open a shared multisig UTXO and create multiple bilateral channels, which reduces the number of on-chain transactions and improves capital efficiency. Achieving greater scale by reducing complexity, Ark and Spark perform the same function as traditional channel factories with new designs and additional capabilities based on shared UTXOs.  Channel Factories 101 Channel factories have been around since the inception of Lightning. A factory is a multiparty contract where multiple users (not just two, as in a Dryja-Poon channel) cooperatively lock funds in a single multisig UTXO. They can open, close and update channels off-chain without updating the blockchain for each operation. Only when participants leave or the factory dissolves is an on-chain transaction…
Share
BitcoinEthereumNews2025/09/18 00:09
‘Sinners’ Earns 16 Oscar Nominations, Shattering All-Time Record

‘Sinners’ Earns 16 Oscar Nominations, Shattering All-Time Record

The post ‘Sinners’ Earns 16 Oscar Nominations, Shattering All-Time Record appeared on BitcoinEthereumNews.com. Topline “Sinners” shattered a 75-year-old record
Share
BitcoinEthereumNews2026/01/23 02:34
‘Return To Silent Hill’ Is The Worst-Reviewed Video Game Movie In 19 Years

‘Return To Silent Hill’ Is The Worst-Reviewed Video Game Movie In 19 Years

The post ‘Return To Silent Hill’ Is The Worst-Reviewed Video Game Movie In 19 Years appeared on BitcoinEthereumNews.com. Return to Silent Hil Return to Silent Hil
Share
BitcoinEthereumNews2026/01/23 02:19