Bitcoin Cash

Bitcoin

when

Adam Back

<p>As <a href="https://en.coin-turk.com/bitcoin-surges-what-will-drive-prices-to-new-peaks/" rel="noopener noreferrer nofollow">Bitcoin</a> once again attempts to break above the $60,000 threshold, a new debate has emerged within its network. The spotlight is now on BIP 110, a proposal designed to restrict the recording of ordinals and NFT-like extra data onto Bitcoin blocks. If all goes according to plan, BIP 110 is set to activate at block height 961,632 in early August.</p>
<h2 id="the-community-reignites-an-old-debate">The community reignites an old debate</h2>
<p>A longstanding split exists within the Bitcoin community: one group champions Bitcoin’s role strictly as a payment network, while others argue for the inclusion of additional on-chain data. Supporters of BIP 110 insist that Bitcoin should focus primarily on payment transactions. In their view, activities like ordinals, runes, and NFT transactions fall outside Bitcoin’s core purpose and create an unnecessary burden on the network.</p>
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 <p>Blockstream founder Adam Back has reiterated his stance that Bitcoin should not carry transactions viewed as spam within the network.</p>
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<p>Blockstream, recognized as a leading company in Bitcoin infrastructure and sidechain solutions, has long influenced the ecosystem. Adam Back, the company’s founder, remains one of the most prominent figures shaping Bitcoin’s trajectory.</p>
<h2 id="ordinals-and-runes-continue-to-dominate-transaction-traffic">Ordinals and runes continue to dominate transaction traffic</h2>
<p>Recent data reveals that more than 67 percent of Bitcoin network transactions are still connected to ordinals and runes. The daily transaction count exceeds 621,000, and daily fee revenue hovers around $2.3 million. Furthermore, over 91 percent of Bitcoin blocks are full, indicating that spare capacity on the network is quite limited.</p>
<p>Despite this congestion, there are no major stoppages in the mempool. Token minting and the creation of ordinals-like records persist, even as the NFT market slows. Some users see these transactions as legitimate, arguing they nurture the network’s economic activity.</p>
<h2 id="support-for-bip-110-appears-limited">Support for BIP 110 appears limited</h2>
<p>Proponents of the proposal hope a critical mass of nodes will adopt the BIP 110 update. Yet so far, there are clear signs that support among miners and nodes remains fairly limited. As the August activation date approaches, many now believe the Bitcoin network may not move in a single direction.</p>
<p>One possible outcome is that miners continue producing regular blocks, while BIP 110 supporters authorize only those blocks that comply with stricter rules. This scenario could effectively split Bitcoin into two—one chain that accommodates ordinals and another that enforces tighter constraints.</p>
<p>Such a split draws inevitable comparisons to the contentious <a href="https://en.coin-turk.com/bitcoin-cash-gains-significant-attention-with-recent-performance/" rel="noopener noreferrer nofollow">Bitcoin Cash</a> hard fork in the past. Still, if BIP 110 fails to achieve broader consensus, it may continue with only marginal support or see a gradual decline in block production over time.</p>
<h2 id="warning-issued-for-wallet-users">Warning issued for wallet users</h2>
<p>In the short term, the most critical risk may impact end users. There are warnings that some Bitcoin wallets could malfunction around the activation date. In particular, the Bitcoin Knots wallet—which is included in the BIP 110 package—may encounter issues, potentially leaving some coins temporarily unspendable.</p>
<p>A quick glossary: Bitcoin Knots is an alternative Bitcoin client. It can validate network rules with its own nodes and may incorporate policy differences compared to Bitcoin Core.</p>
<p>As the crucial block height in early August draws closer, users are being urged to act with caution when sending funds or checking wallet compatibility.</p>
<p>The post <a href="https://en.coin-turk.com/bip-110-divides-the-bitcoin-world-as-67-percent-of-transactions-face-a-new-restriction-what-are-the-risks-for-august/" rel="noopener noreferrer nofollow">BIP 110 divides the Bitcoin world as 67 percent of transactions face a new restriction! What are the risks for August?</a> appeared first on <a href="https://en.coin-turk.com" rel="noopener noreferrer nofollow">COINTURK NEWS</a>.</p>

BIP 110 divides the Bitcoin world as 67 percent of transactions face a new restriction! What are the risks for August?

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