Bitcoin's Data Transaction Debate Stalls Amid Miner Resistance

A contentious proposal to restrict large data transactions on Bitcoin's network stalled after just two blocks were mined. BIP-110, which aimed to limit contiguous data inscriptions, failed to secure broad miner support.

The proposal sought to introduce seven consensus restrictions for approximately one year, including limiting new output scripts and capping certain types of data pushes at 256 bytes. This was not intended to eliminate on-chain data entirely, but rather make it more costly and difficult to inscribe large volumes of contiguous data.

However, the proposal faced opposition from prominent figures such as Michael Saylor and Adam Back, who argued that changing consensus rules in response to a short-term controversy could weaken Bitcoin's freedom to transact and long-term fee market. They also predicted that the minority chain would stall due to its lack of hash power.