Lede
A growing segment of the Bitcoin network has begun signaling support for Bitcoin Improvement Proposal 110 (BIP-110), a proposed temporary soft fork designed to address concerns over arbitrary data storage on the blockchain. Currently, 583 out of 24,481 nodes are running software that supports BIP-110, which represents approximately 2.38% of the network signaling for the change. This movement is a specific response to recent changes in the primary node software implementations and aims to implement a consensus-level restriction on the amount of data that can be included in individual transactions, specifically targeting the use of script codes that allow for the embedding of non-financial information.
The BIP-110 initiative introduces specific technical constraints, including a 34-byte limit on transaction outputs and a cap on the OP_RETURN data limit at 83 bytes. According to data from The Bitcoin Portal, the primary software implementation facilitating this soft fork is Bitcoin Knots. The proposal is designed as a temporary measure with a defined lifecycle of one year. After this initial one-year term, the community and developers will have the opportunity to evaluate its effectiveness and decide whether to extend, alter, or sunset the restrictions. This movement follows significant changes in the broader Bitcoin software ecosystem, where developers previously opted to remove similar data restrictions in Bitcoin Core version 30, sparking a debate over the long-term health and decentralization of the network.
Context
The emergence of BIP-110 is directly linked to the release of Bitcoin Core version 30, the latest upgrade to the network’s most widely utilized node software. In this version, Bitcoin Core developers unilaterally removed the previous OP_RETURN data limit, which had been capped at 83 bytes. This decision followed a controversial pull request first introduced in April 2025, which suggested the removal of arbitrary data limits despite general opposition from the wider Bitcoin community. When the update went live in October 2025, it formalized a shift toward allowing larger amounts of arbitrary data to be embedded within the Bitcoin ledger, leading to immediate pushback from various network participants.
OP_RETURN is a specific script code that serves as a mechanism for users to include arbitrary data in a transaction. Historically, this has been a point of contention among participants who disagree on the primary purpose of the Bitcoin blockchain. The removal of the 83-byte cap in version 30 has intensified this debate, leading critics to argue that the change incentivizes the use of the ledger for spam rather than purely financial transactions. This technological shift prompted the adoption of alternatives like BIP-110 and the Bitcoin Knots implementation, as 583 nodes seek ways to maintain the previous constraints that they believe are necessary for the protocol’s stability and intended use as a decentralized monetary network.
Impact
The removal of data limits has sparked a divide regarding the technical requirements of running a Bitcoin node and the potential for network centralization. Critics argue that allowing arbitrary data to proliferate increases the storage costs for node operators. Because Bitcoin nodes can currently be run on consumer-grade computers, unlike high-throughput blockchains that generate large quantities of data and require specialized hardware, there is a fear that increasing data loads will undermine the Bitcoin protocol’s value proposition. If the cost of maintaining the ledger becomes prohibitive, it could lead to increased centralization as fewer individuals are able to participate in network validation.
Bitcoin advocate and educator Matthew Kratter has expressed significant concern regarding this trend, comparing the potential impact of arbitrary data to a parasitic plant like ivy that eventually consumes and destroys the structure of a tree. In his view, spam has the potential to destroy the inner scaffolding of the network. Conversely, Jameson Lopp, a Bitcoin Core contributor, supports the uncapped OP_RETURN limit. Lopp argues that transaction filters do little to stop spam on the network, suggesting that such limits are ineffective. This ideological split highlights the tension between those who prioritize low-cost node participation and those who believe the network should remain open to all valid transaction types without protocol-level data filters.
Outlook
The future of the Bitcoin network’s data policy remains uncertain as the community observes the deployment of BIP-110 over its projected one-year term. This period serves as a critical testing ground for the temporary soft fork, providing data on whether such limits can effectively curb the growth of arbitrary data without disrupting the network’s broader utility. Depending on the results of this deployment, the proposal may be extended or modified after its initial term. Currently, with 583 out of 24,481 nodes signaling for the proposal, the movement represents a significant minority that is actively challenging the unilateral changes made in Bitcoin Core version 30.
As the debate continues, the focus will likely remain on the balance between innovation and the preservation of the network’s core decentralized nature. The disagreement between those who view arbitrary data as a threat to the ability to run nodes on consumer-grade hardware and those who see data limits as futile will continue to shape the development of both Bitcoin Core and alternative implementations like Bitcoin Knots. The outcome of the BIP-110 experiment will likely influence future discussions regarding protocol-level changes and the long-term sustainability of the Bitcoin ledger, ensuring that the network’s structural integrity is maintained against the potential for increased storage costs and centralization.
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