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BIP-110 rekindles Bitcoin governance fight over blockchain data limits
CoinDesk says BIP-110, which aimed to restrict certain non financial data on-chain, appears unlikely to activate after lacking meaningful miner and industry support.
Bitcoin’s BIP-110 proposal to temporarily tighten the network’s consensus rules has reignited a major debate over censorship risk and how Bitcoin should handle different uses, according to CoinDesk. The proposal was designed to make many forms of non-financial transaction data far more difficult to store on the blockchain.
Supporters framed BIP-110 as a way to restore Bitcoin’s original peer-to-peer digital cash purpose, arguing that it should not be up to the network to judge what uses are acceptable. Critics said the changes would effectively restrict or censor certain applications, raising concerns that the rules could be used to limit specific activity on the chain.
CoinDesk reports that BIP-110 now appears to have little chance of activation because it gained little support from miners or the wider industry. The outlet also notes that multiple high-profile Bitcoin developers and investors voiced opposition to the proposal.
The controversy is tied to post-Taproot developments, CoinDesk says. After the 2021 Taproot upgrade enabled developers to embed data in transactions, inscriptions and related innovations like Ordinals and Runes drove renewed disagreement about whether Bitcoin should allow these uses to expand through blockspace.
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