Bitcoin's BIP-110 Split Is a Real-Life Test of Who Controls the Network

Bitcoin just got a live demonstration of how messy governance can get when everyone doesn't agree. At block 961,632, a group of supporters started enforcing a new rule called BIP-110, even though almost no miners were signaling for it.

BIP-110, also called the Reduced Data Temporary Softfork, is meant to limit how much random data can be stuffed into Bitcoin transactions, basically a shot at inscriptions and similar data-heavy activity. Supporters say it protects node operators from unnecessary bloat. Critics say messing with what counts as a "valid" transaction is a slippery slope.

The Numbers Don't Lie

Miner signaling was sitting under 2.5%, way below the 55% needed. So instead of giving up, BIP-110 fans just started running nodes that reject blocks without the new rules, splitting off onto a much smaller chain with way less hash power.

For now, the main chain still has the miners, the liquidity, and the trust. But this whole episode shows that disagreements in Bitcoin don't just disappear, people can literally fork off and try their luck.