Bitcoin Developers Clash Over BIP-110 and Data Storage on Blockchain

iconBeInCrypto
Share
AI summary iconSummary
Bitcoin developers are split over BIP-110, a proposal to restrict on-chain data storage and curb spam. Ordinals developers argue their method can store data in smaller, permitted chunks. The proposal needs miner support to pass, but only 0.73% of miners signaled approval by June 30, well below the 55% threshold. Blockstream CEO Adam Back warned of a possible fork if consensus fails. Inflation data and on-chain data remain key concerns in the ongoing debate.

Ordinals developers say their technology will survive BIP-110, a proposed rule change that aims to stop people from storing files on Bitcoin. The fight comes down to one question. Should Bitcoin (BTC) handle only money, or anything users pay for?

Inscriptions let people store images and text on the Bitcoin blockchain, similar to NFTs. BIP-110 would block most of that data for one year. Supporters call it spam, while critics say Bitcoin should stay open to everyone.

Sponsored
Sponsored

What Would BIP-110 Change for Bitcoin?

Every Bitcoin transaction can carry a little extra data, and inscriptions use that space to store pictures and messages forever. The proposal would shrink the allowed space to 256 bytes per piece, about one short paragraph of text.

That limit would break the storage method inscriptions use today. The rule would last for one year, then switch off automatically, and old coins would not be affected.

Its author, who writes under the pen name Dathon Ohm, credits Bitcoin Knots maintainer Luke Dashjr for the first draft.

Miners vote by adding a small flag to the blocks they mine. The plan needs 1,109 flagged blocks out of 2,016 in a two-week window. However, the public monitor counted just three flagged blocks as of June 30, under 1%.

BIP-110 miner signaling chart showing 0.73% support versus the 55% activation threshold, alt text "BIP-110 signaling status", Source: bip110.org monitor]
BIP-110 miner signaling chart showing 0.73% support versus the 55% activation threshold, alt text “BIP-110 signaling status”, Source: bip110.org monitor

Support has never passed 1% since voting opened in December 2025. The best two-week stretch reached 0.79% in mid-June.

Sponsored
Sponsored

Here is the twist. The plan does not need a majority to activate. From around early August, computers running the BIP-110 software will reject blocks that do not carry the flag.

Blockstream CEO Adam Back has warned of fork risk, meaning Bitcoin could split into two competing versions. MicroStrategy’s Michael Saylor called the plan a self-inflicted risk.

Dashjr, for his part, framed the stakes as existential on Thursday.

“If BIP110 fails, Bitcoin fails with it. I am not interested in any CBDC, much less an unregulated CBDC pretending to be decentralised,” he wrote.

Follow us on X to get the latest news as it happens

A CBDC is a government-issued digital currency. In his view, a Bitcoin that cannot reject spam loses what makes it different.

Ordinals Developers Say They Are Ready

On July 2, Ordinals developer lifofifoX published a fix that stores data in a new way. It cuts files into small, allowed pieces instead of using the method that BIP-110 bans. In short, inscriptions would keep working even if the rule passes.

Ordinals creator Casey Rodarmor approved the fix the same day.

“Looks good to me! Let’s wait until BIP-110 activates to merge this,” Rodarmor wrote on GitHub.

The other side has already hit back, filing a counter-update to Bitcoin Knots, the software most BIP-110 supporters run. He argues the software simply does not notice the new format, letting it slip past the size checks.

The back-and-forth echoes an earlier inscription debate that also split the community.

Money sits at the center of the fight. In October 2024, Runes, a similar data-based format, drove a 32% fee increase that paid miners.

In contrast, supporters say the volunteers who run Bitcoin’s network computers must store all that data forever and get nothing for it.

The forced voting phase is about five weeks away. Back has already dismissed the August deadline as a path to a minority altcoin, a spinoff coin few would follow.

The coming weeks will show whether the miner’s silence means opposition or indifference.

Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information. Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.