Bitcoin faces split threat as BIP-110 deadline looms

External threats rain down on Bitcoin, from quantum computers to security vulnerabilities. Yet, the most immediate danger comes from within. The network is about to pass block 961632, triggering a mandatory window for BIP-110. Miners have already chosen their side. Developers brandish the threat of an algorithm change. The crypto-sphere holds its breath.

Block 961632: the countdown that has miners shaking in their boots

The weekend promises to be decisive for the Bitcoin ecosystem. The mandatory BIP-110 window opens at block 961632, a deadline that revives the old demons of the 2017 wars. This proposal, championed by Bitcoin Knots developers, aims to reduce non-financial data in Bitcoin transactions. Ordinals and other inscriptions could see their days numbered.

However, miners do not hear it that way. Support caps at 2.59%, a negligible number. Only 47 blocks out of 1818 signaled their approval. The 55% threshold seems out of reach, as Michael Saylor pointed out. MARA Pool even mined a block with a Pepe image, a digital middle finger to the reform supporters. 

“Really MARA? 3.85 MB space for that? People use Slipstream for that… ” protested a user on X.

Major mining pools, Antpool, F2Pool, ViaBTC, remain silent. Only a few small pools, like SoV or Roughnecks, show support. Exchanges prepare for the worst.

The nuclear option: a PoW change to rein in rogue miners

Faced with miners’ obstruction, developers have pulled out the heavy artillery. Chris Guida prepared code that would allow changing Bitcoin’s proof-of-work algorithm. This contingency measure, based on Luke Dashjr’s 2017 code, would render current ASICs obsolete on a new chain. A real earthquake for the mining industry. 

“It’s just code to keep on hand in case miners betray Bitcoin, to activate later “.

Guida on X

Luke Dashjr was sharper: “Core is the scamcoin “. The new chain would have an initial mining difficulty a million times lower, allowing regular computers to participate. The code exists, but no activation date has been set. 

Options include SHA-256, SHA-256d, RIPEMD-160, and HASH160. Such a measure would create a minority crypto with a fragile infrastructure, a prospect already dividing the crypto community.

The battle for Bitcoin’s soul: Ordinals vs pure transactions

The BIP-110 conflict revives a fundamental question: what is Bitcoin for? A network of pure financial transactions or an immutable data repository? Ordinals and Runes supporters want to use block space to store images, texts, everything that fits in a transaction. 

BIP-110 defenders argue that this practice diverts Bitcoin from its original mission. The block mined by MARA Pool with a Pepe image is an explicit provocation. 

“Not on my node“, replies a user, summarizing reform supporters’ stance. Start9 closed its Lightning channels to protect itself from a possible split. Australian exchanges Bitaroo and Hardblock have already published contingency plans. “Is this like creating another BCH, BSV, etc.? ” wonders a user, summarizing the prevailing worry. Comments on X range from concern, irony to resignation.

Key figures of the BIP-110 deadline

• BTC price at the time of writing: $64,901
• Miners support: 2.59% (47/1818)
• Required threshold: 55% (1109/2016)
• Start block: 961632
• Planned activation block: 965664

Eye of the storm: Bitcoin holds steady, but existential questions remain

Despite the threat of a split, Bitcoin’s price remains stable around $64,000. Markets seem to ignore the conflict or await a clearer signal before reacting. The mandatory window could force miners to take a stand. If the split happens, users will have to choose between two chains. Some accuse Guida and Dashjr of wanting to create a new “shitcoin”.

Others believe miners betray Bitcoin by refusing to signal BIP-110.

Bitcoin governance stands at a turning point. Will economic nodes impose their rules on miners? Will miners retain control of the network? The battle for Bitcoin’s soul has never been so intense. One thing is certain: the outcome of this conflict will redefine crypto governance rules for years to come.

The quantum threat looms over Bitcoin, and some analysts worry about the network’s strategic lag. While the BIP-110 conflict divides the community, the crypto industry holds its breath. The split may be inevitable. Bitcoin will survive, but at what cost?