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Bitcoin Core’s Major v30 Update Divides Community Over Massive OP_RETURN Data Expansion – Bearish for BTC?

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Bitcoin Core released model 30.0 on October 12, eradicating the 80-byte OP_RETURN restrict and growing the default information service dimension to 100,000 bytes, successfully permitting practically 4MB of arbitrary information per transaction whereas allowing a number of OP_RETURN outputs.

The controversial improve has break up the neighborhood, with neighborhood members like Eric Gens issuing the “strongest warning” in opposition to operating the model resulting from spam dangers and potential authorized liabilities.

At the identical time, Blockstream CEO Adam Back defended the replace, arguing that it comprises important safety patches from “200 most expert individuals on the planet.

Technical Changes Trigger Philosophical War Over Bitcoin’s Purpose

The replace additionally lowered the minimal relay payment from 1 to 0.1 satoshis per vByte and applied TRUC transaction assist for Lightning Network enhancements.

Bitcoin Core has introduced that it’ll disclose 5 low-severity vulnerabilities fastened in v30 inside two weeks, with variations 27.x and older now at end-of-life standing.

The launch marks Bitcoin’s most vital coverage shift because the block dimension wars, as the choice implementation Bitcoin Knots has grown to signify 28% of community nodes, up from simply 67 nodes in March 2024.

Trezor CTO Pavol Rusnak announced he’s operating Bitcoin Core v30, whereas critics urged customers to not improve.

Earlier this month, Nick Szabo warned that the “very well-publicized improve within the OP_RETURN allowance very publicly invitations extra non-financial information onto Bitcoin,” arguing that “Bitcoin is cash, not a knowledge spam Dropbox.”

The improve eliminated legacy BDB pockets assist solely, eliminating a number of wallet-related RPCs and requiring migration to the descriptor pockets format.

The philosophical divide facilities on Bitcoin’s core perform, with Ordinals ecosystem chief Leonidas threatening last month to fund a Bitcoin Core fork backed by miners controlling over 50% of the hash charge if builders try to censor transactions.

Leonidas claims that Ordinals and Runes have contributed over $500 million in transaction charges since 2023.

Security Patches Fuel Upgrade Pressure Despite Controversy

Adam Back argued that “socially attacking, urging rejection of safety and robustness fixes” constitutes “itself an assault on Bitcoin,” emphasizing the significance of v30’s safety enhancements.

He criticized Luke Dashjr for “unblocking, replying, and reblocking so that folks can’t right him in thread,” calling it “such a weak transfer” and urging builders to rebase on v30 for half a dozen safety bug fixes.

Bitcoin Core’s safety disclosure coverage states that 5 low-severity vulnerabilities fastened in v30 shall be disclosed in two weeks, whereas any medium or high-severity fixes received’t be revealed till a 12 months after launch.

Most fixes in v30 have been backported to v29.2; nevertheless, builders famous that some vulnerabilities could also be inconceivable to backport with out revealing the problem to customers earlier than they will improve.

Luke Dashjr responded that safety points are “additionally fastened in Knots 29.2”.

He blamed “individuals actively making an attempt to cover safety points from Knots devs,” claiming he was faraway from the safety record after serving for over a decade.

Notably, Bitcoin Advocate Alan Watts additionally argued that “Core v30 will not be an existential risk to Bitcoin,” noting that “by no means once more will nodes blindly replace to the newest model” and calling this elevated vigilance “an ideal victory.”

Data Expansion Stirs Block Size War-Era Tensions

The OP_RETURN growth permits Atomicals Virtual Machine to execute extra complicated contracts straight on Bitcoin, with supporters arguing it permits crowdfunding protocols to retailer all participation and validation information inside a single transaction.

As Adam beforehand noted, 105 million JPEGs now exist on-chain, up 20% since May, with common inscription prices of $8, displacing professional financial transactions.

Just final month, Bitcoin Core developer Jimmy Song criticized the Taproot upgrade for overlooking the “social assault floor,” arguing that builders underestimated the unintended penalties of enabling non-financial transactions at scale.

Song stated Taproot didn’t ship on its guarantees of privateness and effectivity, with a poor multisig consumer expertise making it “mainly a non-starter.”

However, he acknowledged that future purposes, reminiscent of BitVM and Ark, might probably justify the improve’s prices.

Back estimates Ordinals generate roughly 1% of extra charges, translating to roughly 0.1% of miner income after community changes.

The spam business generates $250 million yearly in charges, but it surely additionally probably damages Bitcoin’s status and costs out professional customers.

He steered financial lobbying mechanisms the place fee-paying customers direct funds towards swimming pools that filter JPEG transactions.

Bitcoin Bearish? Big Uncertainty Ahead

The most intellectually sincere evaluation acknowledges that Bitcoin faces a important juncture, the place restoration from the Friday-Weekend liquidation event should show sustainable by reclaiming key resistance ranges or threat a deeper retracement.

The instant problem is breaking above $116,000 with conviction, which might validate the restoration and probably set off momentum shopping for towards the higher channel boundary round $120,000$126,000 ATH.

Bitcoin Core's Major v30 Update Divides Community Over Massive OP_RETURN Data Expansion – Bearish for BTC?
Source: X/@CryptoTony__

The most possible near-term situation entails continued consolidation between $110,000 and $118,000 as markets digest the liquidation occasion and assess whether or not situations assist a sustainable restoration.

A retest might occur if assist round $110,000$112,000 holds firmly and shopping for curiosity emerges on weak spot.

However, failure of this assist would probably speed up decline towards $100,000-$105,000, probably invalidating the bullish channel structure and suggesting extra substantial correction forward.

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