Battle for Bitcoin's soul opens as first block supporting 'clean-up' proposal is mined

Tech Share Share this article Copy link X icon X (Twitter) LinkedIn Facebook Email Battle for Bitcoin's soul opens as first block supporting 'clean-up' proposal is mined A Bitcoin block signaling the BIP-110 proposal has appeared onchain while critics push back by inscribing a large image in protest. By Jamie Crawley , AI Boost | Edited by Sheldon Reback Mar 2, 2026, 5:15 p.m. Make us preferred on Google Bitcoin’s latest governance clash escalated this week with the first block signalling support for BIP-110 Bitcoin’s latest governance clash escalated this week as the first block signaling support for BIP-110. (Shutterstock, modified by CoinDesk) What to know : The first block signaling support for BIP-110 was mined by Ocean, showing support for the proposal to limit non-financial data on the original blockchain. BIP-100 is a temporary soft-fork proposal to cap arbitrary transaction data on Bitcoin for a year. Critics countered with experiments such as embedding a 66KB image as a statement against data restrictions, underscoring ideological rifts. Bitcoin’s latest governance clash escalated this week as the first block signaling support for a temporary soft fork designed to restrict arbitrary, non-monetary data in the blockchain's transactions was produced by mining pool Ocean . The proposal, formally assigned BIP-110 after evolving from earlier drafts, aims to reinstate strict limits on transaction output sizes and arbitrary data fields for about a year. The idea is to curb what proponents see as “spam” uses of block space for non-financial data. They argue that unchecked data, including large inscriptions and so-called OP_RETURN payloads, threaten the original blockchain's role as sound monetary infrastructure and burden node operators. The community remains deeply divided. Prominent critics, including Blockstream CEO Adam Back , have warned that consensus-level intervention could harm Bitcoin’s credibility and lead to preferential treatment of some transactions in violation of the principle of neutral transaction capacity. He also questioned the level of support for the proposal, which, he said, increased the risk of the blockchain being split. Adding fuel to the debate, a developer recently inscribed a 66 KB image in a single transaction on Bitcoin, an apparent pushback against BIP-110’s core claims and a demonstration of how large amounts of data can be encoded even without relying on OP_RETURN. OP_RETURN and similar approaches are script instructions used to mark a transaction output as invalid for spending, effectively allowing users to repurpose that space to permanently embed arbitrary data — like text or images — directly into the blockchain As the controversy unfolds, it underscores enduring philosophical tensions within Bitcoin. Should network aggressively defend a narrowly defined monetary purpose or maintain maximal neutrality toward arbitrary uses of its base layer? Bitcoin News BIP AI Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards . For more information, see CoinDesk's full AI Policy . More For You Hong Kong links up with Shanghai trade authorities to put cargo data on blockchain By Sam Reynolds | Edited by Omkar Godbole 7 hours ago HKMA teams up with mainland regulators to develop a cross-border platform linking cargo data and electronic bills of lading, aiming to cut trade finance friction and plug Chinese supply chains into global markets What to know : Hong Kong has signed a memorandum of understanding with Shanghai authorities to build a shared blockchain-based platform for cross-border cargo trade and trade finance. The planned system will link trade data, electronic bills of lading, and financing systems under the Hong Kong Monetary Authority’s Project Ensemble framework, connecting with Hong Kong’s Commercial Data Interchange and CargoX. Officials hope the initiative will streamline trade finance, deepen Hong Kong’s integration into mainland supply chains, and strengthen its role as a compliant gateway between Chinese trade and global capital markets. 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