A recent update to Bitcoin Core's transaction relay policy, which removes an 80-byte data cap for OP_RETURN outputs, has ignited a significant debate within the Bitcoin community, drawing warnings from prominent figures regarding potential regulatory and legal risks. The change, set to be implemented in Bitcoin Core v30.0, could allow for larger data payloads, up to 4MB per transaction, embedded directly into the blockchain. This development has been met with apprehension by some who fear it could expose node operators to legal liabilities for transmitting "prohibited material."
Evan Wilburn, a notable voice in the crypto space, articulated these concerns on social media, stating, "Many are underestimating the risk here." Wilburn specifically referenced smart contract pioneer Nick Szabo, suggesting Szabo is "signaling something deeper" about the implications of expanding Bitcoin's data-relay surface amidst increasing institutional scrutiny. The core fear is not merely misuse or spam, but the "narrative an adversary could manufacture," such as "Thousands of Bitcoin nodes are transmitting prohibited material."
Nick Szabo has previously highlighted legal risks associated with unobfuscated content storage on the blockchain, citing precedents and legislation like California's AB 1052. He warns that standardizing data formats could inadvertently increase liability for node operators by making potentially harmful content more accessible to regulators and law enforcement. This perspective underscores a broader concern that "very few people in Bitcoin understand how broad those statutes are or how easily they can be weaponized."
The Bitcoin Core developers, while pushing forward with the update, maintain that their responsibility is to ensure the software's efficiency and reliability for block validation and relay. They clarify that the change does not endorse non-financial data usage but acknowledges Bitcoin's nature as a censorship-resistant system that will be used for various purposes. However, critics like Luke Dashjr, a veteran software developer, and proponents of Bitcoin Knots, a fork with stricter data policies, argue that the update risks network bloat and compromises Bitcoin's monetary focus.
The controversy reflects a tension between technical neutrality and proactive risk mitigation, particularly as Bitcoin navigates a period of significant institutional adoption. Wilburn advocates for a cautious approach, urging the community to "keep Bitcoin boring and stable while we go through an important adoption moment," rather than introducing new vectors for regulatory challenge. This ongoing debate highlights the complex balance between innovation, decentralization, and the evolving regulatory landscape surrounding digital assets.