The Bitcoin blockchain split into two competing chains on Aug. 8 after nodes running BIP-110 entered a mandatory-signaling phase that requires blocks to carry an approval signal. The development created a divergence between nodes enforcing the proposed rules and the broader network, where support among miners remains limited.
The split began at block 961,632, when Antpool, one of Bitcoin’s largest mining pools, produced a block without the required BIP-110 signal. Most nodes accepted that block as valid, while computers enforcing BIP-110 rejected it and instead recognized a different block produced by Roughnecks, a miner associated with Ocean.
The BIP-110 activation has created a separate Bitcoin chain whose nodes reject blocks that do not contain the required approval signal, despite the proposal having very limited mining support.
BIP-110 Creates a Parallel Chain
Mandatory signaling differs from a conventional activation process because participating nodes begin enforcing the proposed rules without requiring approval from a majority of miners. As a result, nodes following BIP-110 can reject blocks that remain valid under the rules followed by the majority of the network.
The divergence quickly became visible in the chain heights. While the main Bitcoin chain advanced to block 961,640, the BIP-110 chain remained at block 961,633, leaving it seven blocks behind.
The gap indicates that the BIP-110 chain currently has substantially less mining power behind it. A chain supported by only a small number of miners can face slower block production and may eventually stop advancing if sufficient mining participation does not emerge.
The immediate significance of the split therefore lies not only in the technical enforcement of BIP-110 but also in whether enough miners eventually choose to support its rules. Without greater participation, the minority chain could struggle to maintain consistent block production.
Dispute Over Non-Financial Data
The disagreement behind BIP-110 is part of a broader debate within the Bitcoin community over the role of non-financial data on the blockchain.
BIP-110 proposes limiting the inclusion of non-financial data, including Ordinals inscriptions, for a period of one year. Supporters argue that permanent storage of such information can impose additional burdens on node operators and increase the amount of data that participants must maintain.
Opponents favor a more neutral approach, arguing that transactions should generally be accepted when they comply with network rules and pay the required fees, regardless of whether their data is financial or non-financial.
The dispute intensified following the Bitcoin Core v30 update in October 2025. That update changed the default policy surrounding OP_RETURN and effectively removed the previous 83-byte default limit. Critics of the change argued that the broader data capacity could encourage unwanted blockchain usage and potentially facilitate the inclusion of problematic material.
BIP-110 Emerges From Earlier Proposal
The current proposal developed from BIP-444, another effort to address the treatment of non-financial data on Bitcoin. Developers and community members have remained divided over whether node operators should have greater control over the types and amount of data stored through transactions.
Among the supporters of restricting such data is Ocean Chief Technology Officer Luke Dashjr, who has argued that persistent non-financial data creates long-term costs for the broader node ecosystem. On the opposing side, Strategy Chairman Michael Saylor joined the debate in July, reflecting the disagreement among prominent Bitcoin participants.
The dispute highlights a fundamental governance question for Bitcoin: whether the network should impose tighter restrictions on non-financial blockchain data or continue allowing valid fee-paying transactions under a more neutral policy.
BIP-110 Activation – Automatic Alerts
New Block Found 🚨 🚨 🚨
Blocks this period: 2
Read our BIP-110 Q&A here:https://t.co/UaJhZQV6JI pic.twitter.com/7Lms9xM9jX
— Farside Investors (@FarsideUK) August 8, 2026
Network Stability Remains the Key Test
The BIP-110 chain’s ability to survive will depend largely on whether its miner base expands. At present, the significant difference in chain height indicates that the majority network retains a substantial advantage in mining power.
The split does not necessarily mean that Bitcoin as a whole has permanently divided. Instead, it represents the emergence of a minority chain following a different set of consensus-enforcement rules. Its long-term viability will depend on sustained participation from miners, node operators, and users.
The development also demonstrates the consequences of attempting to enforce controversial consensus changes without broad network agreement. BIP-110’s early divergence from the main chain shows that technical rule changes can create competing network histories when miners and node operators do not reach sufficient consensus.
As Bitcoin continues to process blocks under the competing rule sets, the coming period will provide a clearer indication of whether BIP-110 can attract enough support to remain operational or whether its minority chain will gradually lose relevance.
