The new Bitcoin Improvement Proposal BIP-110 aims to limit non-monetary data, such as that generated by the Ordinals protocol, in transactions through a soft fork to reduce “junk data” bloat. Adam Back has cautioned that this move could undermine Bitcoin’s reputation as a store of value, a concern given the emphasis among Bitcoin maximalists on preserving the network’s purity to maintain its status as digital gold. The Ordinals protocol, which allows the inscription of arbitrary data on Bitcoin satoshis, has already sparked debates regarding block space congestion, adding complexity to the current discussions surrounding BIP-110.
Bitcoin proposal BIP-110 aims to limit non-monetary data in transactions
