Bitcoin Reaches Block 961,632 Amid Controversial BIP-110 Signaling

Bitcoin Hits Block 961,632 as BIP-110 Signaling Begins

Bitcoin has officially reached block 961,632, marking the start of the mandatory signaling period for BIP-110, a soft fork proposal aimed at restricting the embedding of non-financial data within the blockchain.

Low Support for BIP-110

The proposal entered its signaling phase on Saturday around 19:35 UTC, yet it has received minimal backing from miners, with support levels hovering below 2.5%, far from the required 55% threshold for implementation. Notably, influential figures in the Bitcoin community, such as Michael Saylor, chairman of Strategy, and Adam Back, CEO of Blockstream, have openly criticized BIP-110.

User Activation Approach

BIP-110’s champions advocate for a user-activated soft fork (UASF) strategy, which relies on node operators rather than miners to enforce the proposed changes. Node operators would need to update their software to reject blocks from miners that do not show support for BIP-110. This approach aims to apply pressure on miners to comply with the new rules or risk being excluded from the network.

Potential Outcomes of the Fork

Historically, proponents of BIP-110 draw parallels to the 2017 activation of SegWit via BIP-148, an initiative that similarly relied on user action without sufficient miner support.

The implication of user adoption for BIP-110 could spark a split within the Bitcoin network, potentially leading to two competing systems: the main network backed by the majority of mining power and capital, and a minority fork limited to nodes enforcing BIP-110. The viability of this breakaway chain hinges on its ability to attract additional node operators, although it risks stagnation without broader support.

Next Steps and Timeline

The signaling window will remain open until Bitcoin reaches block 965,664, which is anticipated in approximately four weeks’ time.