What Is Bitcoin Knots, a Fork by Luke Dashjr?

Bitcoin Knots, a software implementation of the Bitcoin protocol launched in 2011 by programmer Luke Dashjr, allows miners and other network participants to:

• Verify, 
• Store, 
• Transmit transactions.

From a technological perspective, Bitcoin Knots is a fork of Bitcoin Core. This means it shares the same underlying codebase but includes additional tools and options. Due to their differences, the two implementations offer varying visions for Bitcoin.

In this article, we’ll cover key aspects of Bitcoin Knots, answering the following questions:

• What is Bitcoin Knots, and what is it used for?
• Bitcoin Core vs. Bitcoin Knots: What’s the difference?
• How popular is Bitcoin Knots?
• Why is there a debate over Bitcoin software?
• How can Bitcoin software influence the future of Bitcoin?

What Is Bitcoin Knots and How Does It Work? 

Since Bitcoin is decentralized, it relies on thousands of individual computers to verify transactions and keep the blockchain up to date.

Devices connect to the Bitcoin network through software clients, which have been essential since Bitcoin’s launch in 2009. Every node runs a version of the Bitcoin protocol, defining the rules of the system—how transactions are verified, how blocks are added, and more.

The role of software is critical in the Bitcoin protocol. A bug or vulnerability could potentially compromise the network's security, leading to issues like double-spending or fraud. Software clients offer varied user experiences, with some designed for beginners and others for more advanced users.

Bitcoin Knots stands as a notable software option. As a full node implementation of the Bitcoin network, it helps secure the network by verifying and relaying transactions.

Launched in 2011 by Luke Dashjr, Bitcoin Knots is a derivative of Bitcoin Core. Dashjr, one of the earliest and most active contributors to Bitcoin Core, created Bitcoin Knots to include modifications and improvements.

In addition to serving as a full node, Bitcoin Knots also includes a built-in wallet, allowing users to store and manage their bitcoins.

Those who want to run a Bitcoin node can download and install Bitcoin Knots on their device and sync it with the network by downloading the blockchain history.

Related: Who Really Controls Bitcoin? Inside the Centralization of Mining in 2025

Bitcoin Core vs Bitcoin Knots: Two Different Perspectives on Bitcoin

Anyone closely following Bitcoin news knows that technology debates have played a significant role in discussions surrounding the network. Beyond technical preferences, there are also philosophical disagreements between Bitcoin Core and Bitcoin Knots supporters.

Here’s a brief overview of Bitcoin Core, the most widely used implementation of the Bitcoin protocol.

Bitcoin Core is the direct descendant of the original Bitcoin software created by Satoshi Nakamoto.

In the early days of Bitcoin, Nakamoto was the sole contributor to the project, and the initial Bitcoin software was simply called “Bitcoin” or “Satoshi Client.”

Related: If Satoshi Returns: What Could It Mean for Bitcoin?

As the Bitcoin network grew, the original software was updated and improved. In 2014, it was rebranded as Bitcoin Core to reduce confusion between the Bitcoin network itself and the Bitcoin software.

Bitcoin Core remains the main software that defines the Bitcoin protocol. Currently, over 90% of Bitcoin nodes use Bitcoin Core. However, Bitcoin Knots has been gaining popularity, particularly after a controversial Bitcoin Core proposal to remove the transaction data limit.

Bitcoin Knots vs. Bitcoin Core: Key Technical Differences 

Although Bitcoin Knots is based on the same codebase as Bitcoin Core, the two differ in several key areas:

• Features

Bitcoin Core is cautious about adding new features, focusing on stability and security, which makes it a solid choice for beginners. In contrast, Bitcoin Knots includes additional tools and experimental features, giving users more control. However, these are mostly geared toward advanced users who are comfortable with technical settings.

• Update speed

Changes in Bitcoin Core undergo a thorough review process, which can slow the rollout of new features. Bitcoin Knots, however, tends to incorporate these updates more quickly while adding its own set of features and policy adjustments.

• Mempool and policy settings

Bitcoin Knots provides node operators with access to policy settings that are either hidden or fixed in Core. This gives users more control over how their node handles transactions and affects mempool behavior and transaction propagation.

• Bitcoin vision

Bitcoin Core remains the reference implementation of the Bitcoin network. Bitcoin Knots, on the other hand, provides an alternative version that retains features and options removed from Core over time.

Related: Vitalik Buterin: Ethereum Should Be as Simple as Bitcoin

Bitcoin Implementation Conflict Over Recent Years 

Disagreements over Bitcoin’s purpose and use cases have always existed. The central debate revolves around whether the network should remain focused solely as a peer-to-peer monetary system or evolve into something more.

Bitcoin Core and Bitcoin Knots represent opposing views in this debate. Bitcoin Knots advocates for a more conservative approach, resisting major changes.

Luke Dashjr, the creator of Bitcoin Knots, has consistently argued for preserving Bitcoin's original purpose as peer-to-peer digital money. He supports maintaining strict limits on non-financial data usage and prioritizing network efficiency.

While some members of the Bitcoin community favor diversity in the ecosystem, Dashjr remains firmly in the camp that believes the network should adhere to its original principles.

Previously, Dashjr proposed canceling BRC-20 Ordinals, which are NFTs directly stored on the Bitcoin blockchain. Ordinals allow users to inscribe text, images, or videos on the Bitcoin blockchain.

After their launch in January 2023, Bitcoin Ordinals quickly gained popularity. However, according to Dashjr, storing NFT metadata on Bitcoin was made possible due to a bug in Bitcoin Core. He recommended that Bitcoin Core address the vulnerability and remove Ordinals in the next upgrade.

His proposal received mixed reactions, with critics arguing that Ordinals is an innovation and that Bitcoin is a permissionless technology.

In May 2025, a new wave of discussions emerged after Bitcoin Core developers announced plans to remove the OP-RETURN limit in the software’s next release. Led by Peter Todd, the proposal would increase Bitcoin’s block size and allow for storing more data.

As an opponent of Bitcoin’s non-monetary use, Dashjr criticized the proposal in the GitHub discussions, stating that it would require invasive changes to the protocol.

While the proposal is still under review, it has raised concerns about Bitcoin Core's dominance, leading some critics to switch from Bitcoin Core to Bitcoin Knots.

How Can Bitcoin Software Debates Decide the Future of Bitcoin

The software that runs Bitcoin nodes defines the rules of the network. 

It determines:

• how transactions are verified, 
• how blocks are added, 
• what features are supported, 
• what limits are enforced (like block size or transaction data).

Therefore, updates and the software node operators choose to run have a critical role in the ecosystem. Software can also impact adoption in several ways:  

• Features and usability

Software decisions affect how easy or complex it is to use Bitcoin. Adding or removing features, like support for NFTs, smart contracts, or staking, can attract or repel different user groups.

• Stability and security

Well-maintained software helps ensure trust in the system. A bug or poorly implemented change can create vulnerabilities, leading to lost funds or reputational damage.

• Philosophy and public perception

Software reflects values. Conservative implementations appeal to users who want Bitcoin to remain digital cash. More experimental versions may appeal to developers and early adopters who want to build new things on top of Bitcoin.

• Market confidence

Investors and institutions pay close attention to the decisions made by Bitcoin’s development community. Conflicts or major forks can lead to volatility or hesitation to adopt.

Why Bitcoin Software Tensions Might Actually Help the Network

Although Bitcoin Core remains the most widely used Bitcoin software, the growing popularity of alternatives like Bitcoin Knots is challenging its dominance, and that’s a healthy sign for the network’s decentralization.

One major advantage is improved security. If a bug or vulnerability appears in one implementation, others can act as a fallback, helping reduce the risk of a single issue disrupting the entire network. This kind of redundancy makes the system more resilient overall.

It also fuels innovation. When different teams maintain their own versions of Bitcoin, they bring fresh ideas to the table. Rather than relying on one centralized development path, the ecosystem benefits from competing perspectives that push the software forward and question long-standing assumptions.

Another benefit is the flexibility to accommodate different philosophies. Bitcoin’s community isn’t unified in its vision – some want a lean, efficient system focused on peer-to-peer payments, while others see value in expanding Bitcoin’s capabilities. Having multiple clients allows users to support the version that best reflects their values.

Perhaps most importantly, the presence of multiple implementations helps prevent any single group from having too much influence over Bitcoin’s future. If users disagree with a decision made by the dominant software, like Bitcoin Core, they have the option to switch to another, such as Bitcoin Knots. 

This acts as a safeguard against centralization and reinforces the principle that Bitcoin should be shaped by its community, not dictated by a single development team.