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Bitcoin Core and Bitcoin Knots are both implementations of the Bitcoin protocol, with Knots being a derivative of Core's codebase, maintained by developer Luke Dashjr.
The primary differences lie in their philosophy, features, and user focus. Bitcoin Core serves as the reference implementation, emphasizing stability, standardization, and broad consensus, and is used by the majority of nodes.
In contrast, Bitcoin Knots targets advanced users seeking greater control and customization, offering enhanced features and stricter policy controls.

A key technical difference is in mempool policy and spam filtering. Bitcoin Knots includes advanced filters that allow node operators to reject non-financial transactions, such as those embedding large data payloads via OP_RETURN, by default.
It enforces a strict 42-byte limit on OP_RETURN data, a policy aimed at preventing network spam and preserving Bitcoin's function as peer-to-peer electronic cash.
Bitcoin Core, on the other hand, has increased its datacarriersize limit to 100,000 bytes in its v30.0rc1 release, a change that has sparked debate over potential network misuse and a departure from Bitcoin’s original monetary purpose.
Core maintains a neutral stance, not filtering transactions based on content, which some view as a commitment to decentralization, while others see it as enabling spam.

Bitcoin Knots also offers more granular configuration options through its bitcoin.conf settings, such as rejectparasites=1, datacarrier=0, and permitbaremultisig=0, giving users fine-grained control over transaction acceptance.
It provides a more feature-rich experience with advanced debugging tools, a graphical user interface, and support for features like disabling SegWit, which Core does not allow.
Knots has historically been proactive in addressing security vulnerabilities, such as patching the CVE-2023-50428 exploit related to inscriptions before Core.

While Core is regularly updated and widely used, Knots is less stable and used by a smaller, more specialized user base.
However, supporters argue that Knots strengthens network resilience by promoting client diversity, acting as a backup in case Core becomes compromised, and fostering a more robust, decentralized development ecosystem.
The choice between the two often reflects a philosophical stance: Core represents a consensus-driven, standardized approach, while Knots embodies a more libertarian, user-controlled vision of Bitcoin.

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