Bitcoin News Today: Bitcoin's Ideological Split: Money or Data?

The battle between Bitcoin Core and Knots is intensifying as the network inches closer to the October 2025 release of Bitcoin Core v30. The dispute centers on the planned removal of the 80-byte limit on the OP_RETURN opcode, a technical change that allows for the embedding of larger amounts of arbitrary data on the Bitcoin blockchain. While proponents of Bitcoin Core argue that this update promotes innovation and aligns with modern network capabilities, Knots advocates see it as a step toward undermining Bitcoin’s original purpose as a strictly monetary system.

Bitcoin Core’s decision has sparked a deep divide in the community, with critics warning that the removal of data limits could lead to network congestion and the inclusion of non-financial transactions, effectively turning the blockchain into a dumping ground for spam. Developers like Peter Todd and Jameson Lopp have defended the change, emphasizing the importance of allowing users to use the blockchain as they see fit without governance constraints. Conversely, Knots supporters, including Luke Dashjr and Samson Mow, argue that the update could compromise Bitcoin’s neutrality and scalability, potentially deterring adoption by those seeking a purely financial asset [1].

The ideological clash between the two camps reflects broader philosophical debates about Bitcoin’s future. Should it remain a strictly monetary settlement layer, or can it evolve to accommodate experimental on-chain data uses, as long as users are willing to pay fees? Bitcoin Core’s apparent shift is seen by some as a loss of gatekeeping power, while Knots supporters emphasize the need for spam protection and control. This divergence has also led to growing adoption of Knots among node operators, with its share of the network increasing to approximately 17% of all Bitcoin nodes by mid-2025 [2].

Miners and relay service operators play a critical role in determining which transaction types make it onto the blockchain. As the debate continues, some operators are choosing to switch to Knots, with warnings that the Core v30 upgrade could lead to a network split if no consensus is reached. The situation echoes the 2017 SegWit split, as node operators and miners navigate diverging software preferences. Luke Dashjr has also raised concerns about the low number of full node operators, warning that Bitcoin’s decentralization is at risk if fewer than 85% of economic activity is processed through full nodes [3].

With tensions rising, the October release of Bitcoin Core v30 could mark a turning point in Bitcoin’s development. The outcome will likely determine whether the network embraces greater diversity in software usage, or if it faces fragmentation. Cøbra, a long-standing maintainer of Bitcoin.org, has warned that if Core fails to communicate effectively with its users, Knots could potentially replace Core as the de facto reference implementation for the Bitcoin network [4]. This would be a significant shift, as Bitcoin Core has held that position for over a decade.

As the debate continues, users are being urged to choose their node software carefully, as each decision influences the direction of the network. The battle between Bitcoin Core and Knots is not just a technical dispute but a philosophical one, with long-term implications for Bitcoin’s role in the digital economy.

Source:

[1] The battle between Bitcoin Core vs Knots is getting ugly (https://cryptoslate.com/the-battle-between-bitcoin-core-vs-knots-is-getting-ugly/)

[2] The Arrival of Bitcoin Core v30 Is Fragmenting Bitcoiners (https://www.publish0x.com/blockchain-development/the-arrival-of-bitcoin-core-v30-is-fragmenting-bitcoiners-wh-xmgkpkj)

[4] Cøbra warns that Knots could threaten Core's reference (https://protos.com/cobra-warns-that-knots-could-threaten-cores-reference-status/)