Historic Crossroads in the Bitcoin Network: Risk of Split Looms with BIP-110 Update
As the critical process for the controversial BIP-110 update on the Bitcoin network officially began at block 961,632, the risk of the network splitting into two different paths has become a top priority in the cryptocurrency world.
The Bitcoin (BTC) ecosystem is experiencing volatile days as the BIP-110 proposal, which aims to restrict non-payment data on the network, enters its mandatory signaling period. This process, which began around 19:35 UTC on Saturday upon reaching block 961,632, stands out as a UASF (User Activated Soft Fork) initiative relying on the will of users rather than miner support. The proposal aims to temporarily limit non-financial data such as images and text on the network.
Current data shows that miner support for this proposal remains at only 2.5 percent, far below the 55 percent threshold required for activation. This is where the UASF mechanism comes into play, envisioning that node operators will reject blocks from miners who do not support the update. This situation is viewed as a hard move aimed at forcing miners to adopt the rule change or excluding them from the network entirely.
The Fork in the Bitcoin Network and Institutional Opposition
This initiative has caused a deep divergence of opinion within the community. Influential industry figures such as MicroStrategy Executive Chairman Michael Saylor and Blockstream CEO Adam Back are openly opposing the proposal. The opposing side warns that the majority of institutional capital and hashing power will remain on the existing mainnet. Supporters, however, cite the 2017 SegWit (BIP-148) activation as a precedent, arguing that users can determine the direction of the network regardless of miners.
The signaling window, which will continue for approximately the next four weeks, will end when block 965,664 is reached. Like a path splitting in two in a forest, there is a possibility that the Bitcoin network could split into two different chains during this process. On one side, there could be the mainnet with massive processing power, and on the other, a minority chain implementing only the BIP-110 rules. This process represents a critical test for investors regarding network integrity and which side will gain legitimacy for their assets.