Nick Szabo joins the debate as Bitcoin Core v30 update nears, expanding OP_RETURN data limits and raising concerns over legal risks.
As Bitcoin Core’s v30 update approaches, the Bitcoin community finds itself in heated debate. The update brings major changes, including a new wallet format and expanded data capabilities.
The primary controversy surrounds the OP_RETURN opcode, which allows users to embed data in Bitcoin transactions. As the update nears release, Nick Szabo, a prominent figure in the cryptocurrency space, has re-entered the conversation, offering his views on the potential consequences of these changes.
Expanding OP_RETURN and Its Controversy
Bitcoin Core v30 update introduces significant changes to the network, particularly with the OP_RETURN opcode. This opcode allows users to embed small amounts of data within Bitcoin transactions, with the previous limit being 80 bytes.
The new update removes this restriction, allowing for data as large as 4 megabytes per transaction output. This has sparked a divide within the Bitcoin community.
The Core argument I’ve heard is that one can hide data in other ways that are not pruneable; OP_RETURN data is pruneable. This suggests that allowing more data on OP_RETURN conceivably may reduce legal risks.
— Nick Szabo (@NickSzabo4) September 29, 2025
Supporters argue that this change could expand Bitcoin’s capabilities, enabling new use cases for the blockchain. They believe that if users are willing to pay the transaction fees, they should be allowed to use block space however they choose.
However, many Bitcoin purists worry about the consequences of such an expansion. They fear that using Bitcoin for data storage could lead to blockchain bloat, increasing the costs for users and slowing down the network.
Nick Szabo Weighs In on Legal Risks
Nick Szabo’s comments on the issue have added a new layer to the debate.
Szabo, known for his early contributions to cryptocurrency, has raised concerns about the legal risks associated with expanding the OP_RETURN function. He noted that while network fees might act as a spam filter for miners, they do not offer adequate protection for full node operators.
A counter argument is that illegal content in a contiguous standard format, thus readily viewable by standard software, is more likely to impress lawyers, judges, and jurors, and thus is legally more risky, than data that has been broken up or hidden and thus requires specialized…
— Nick Szabo (@NickSzabo4) September 29, 2025
According to Szabo, increasing the amount of data that can be embedded in Bitcoin transactions could lead to legal complications.
Moreover, he pointed out that if harmful or illegal data is stored on the blockchain, node operators might face legal risks, even if they were unaware of the data’s existence.
Szabo suggested that prunable data, like the kind stored through OP_RETURN, might reduce these risks. Moreover, he still emphasized the legal concerns surrounding standard formats that could be more easily accessed and used as evidence.
Should Bitcoin be Used for Data Storage?
The ongoing debate around the OP_RETURN expansion reflects a larger question about the future of Bitcoin.
Some believe that Bitcoin should remain a financial network, solely focused on transactions. Additionally, they argue that allowing Bitcoin to store arbitrary data could compromise its security, efficiency and increase costs for users.
Besides, supporters of the update argue that expanding Bitcoin’s capabilities would provide more flexibility and new opportunities.
They believe that blockchain technology could be used for a broader range of applications beyond just financial transactions. As the update nears release, it’s clear that the Bitcoin community remains divided over the future direction of the network.
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