Key Facts

• The Bitcoin Improvement Proposal (BIP)-110 sought to temporarily restrict certain types of non-financial transaction data on the Bitcoin blockchain, but its supporters and critics have fundamentally different views on its intentions and implications.
• BIP-110's supporters believe it would restore Bitcoin's original purpose as peer-to-peer digital cash, while critics argue it represents an attempt to restrict or censor certain uses of Bitcoin.
• The proposal's activation would have made many types of non-financial transactions far more difficult, but it has failed to gain meaningful support from miners, with only around 0.7% of miners currently in support.
• The debate surrounding BIP-110 centers on the question of what Bitcoin's blockspace is for, with some arguing that it should be used for any valid transaction, while others believe it should be restricted to specific use cases.
• Michael Saylor, founder of MicroStrategy, and Adam Back, co-founder of Blockstream, have both voiced their opposition to BIP-110, with Saylor stating that it "turns a spam dispute into a consensus change that would invalidate some currently valid, fee-paying transactions."