95% of those having an opinion on either side are mostly paraphrasing their favourite podcasters. Oh, and the only thing a larger op_return limit is good for is CSAM, CSAM, CSAM. Allegedly, reportedly.
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the csam stuff is mostly fear mongering from the knots folks, csam can already be relayed and stored today in bitcoin blocks without any changes to the protocol or clients
Yes, the question is how obfuscated? Some really complicated encoding that they had to invent to put it on chain gives legal deniability to node runners for relaying it. A jpg less so. More space makes it easier to use less convoluted encoding. Potentially illegal to run a node with a basic jpg validated on chain.
However we all know that companies like MARA have slipstream which will allow you to go right around knots filters already.
MARA says they scan slipstream submissions, likely just Cloudflare.
This is the real sticking point no one is actually talking about. No one has a way to stop this content inside Bitcoin. We can all relay anything that will validate in a block and it gets right in, or we all filter and essentially outsource prevention to miner centralization and Cloudflare.
Both paths are direct violations of the spirit and intent of Bitcoin in my opinion. Hopefully brighter minds find a third way soon, I'm smart enough to see the real problems through the yelling but I haven't figured out a solution.
Bitcoin treasury companies are the death knell to mining centralization.