BIP-110 Signaling Set to Begin as Community Debates Proposal

BIP-110 signaling is expected to begin in approximately 40 hours, according to Bitcoin Knots advocate Dathon Ohm. The proposal aims to limit the amount of data embedded within Bitcoin transactions, specifically targeting non-monetary uses such as Ordinals.

BIP-110 seeks to curtail the use of the blockchain for storing arbitrary data, which has become popular with the rise of Ordinals, a protocol that allows users to inscribe data onto individual satoshis. Proponents argue that such practices bloat the blockchain and increase transaction costs for all users.

The proposal has sparked debate within the community, with some viewing it as a necessary measure to preserve the blockchain’s original purpose, while others see it as an overreach that could undermine the permissionless nature of Bitcoin. If a significant portion of hash power does not enforce BIP-110, miners and node operators running nodes that apply only this rule could become isolated from the network's majority chain.