Conflict Among Bitcoin Developers: What Role Should the Blockchain Play?

Developers behind Ordinals believe that their technology can endure amidst the proposed BIP-110 regulations, which seek to prevent the storage of files on the Bitcoin blockchain. This debate raises an essential question: Should Bitcoin (BTC) serve solely as a currency, or should it facilitate any transaction that users are willing to pay for?

Inscription technology allows users to embed images and text onto the Bitcoin blockchain, akin to the concept of NFTs. However, BIP-110 would impose a restriction that prohibits most of this data for a duration of one year. Proponents of the rule label such activities as spam, while opponents argue that Bitcoin should remain inclusive to all.

Implications of BIP-110 on Bitcoin

Each Bitcoin transaction can carry a marginal amount of additional data, which inscriptions utilize to permanently store content like pictures and messages. The BIP-110 proposal would drastically reduce this allowance to 256 bytes per item, approximately the length of a short paragraph.

This restriction would disrupt the current storage methodology employed by inscriptions. The alteration is temporary, lasting for a year before reverting back, and it would not impact any previously existing coins.

The creator of the proposal, who goes by the alias Dathon Ohm, acknowledges the contributions of Bitcoin Knots maintainer Luke Dashjr in developing the initial draft.

Current State of Miner Support

Miners signal their approval by adding a flag to the blocks they mine. To pass, the proposal requires 1,109 flagged blocks out of a total of 2,016 within a two-week span. Despite these stipulations, a public monitor reported only three flagged blocks as of June 30, representing less than 1% support.

Since the voting commenced in December 2025, backing for BIP-110 has remained under 1%, with a peak of 0.79% noted in mid-June.

Interestingly, the proposal does not necessitate a majority for activation. Starting in early August, computers running BIP-110 software will begin to reject blocks that lack the appropriate flag. Adam Back, CEO of Blockstream, has warned of the potential risks of a fork, indicating that Bitcoin could eventually divide into separate, competing versions. MicroStrategy's Michael Saylor called this initiative a self-inflicted hazard.

Meanwhile, Dashjr has described the stakes as critical, asserting that if BIP-110 fails, it would signify the failure of Bitcoin itself. He voiced his disdain for central bank digital currencies (CBDCs), stating that a Bitcoin unable to filter out spam undermines its uniqueness.

Response from Ordinals Developers

On July 2, Ordinals developer lifofifoX introduced a solution that allows data to be stored in a new format. This method breaks the files into smaller, compliant pieces, circumventing the limitations imposed by BIP-110. Consequently, inscriptions would continue functioning even if the proposal is enacted.

Ordinals creator Casey Rodarmor endorsed the adjustment the same day, commenting positively on GitHub: “Looks good to me! Let’s wait until BIP-110 activates to merge this.”

In retaliation, the opposing camp has filed a counter update to Bitcoin Knots, the software predominantly used by supporters of BIP-110. The argument suggests that the existing software would overlook the new format, allowing it to bypass size limitations unnoticed.