DATA & FIGURES
The number of Ordinals inscriptions on the Bitcoin blockchain has decreased significantly, with fewer than 10,000 inscriptions per day over the last month, down from a peak of over 400,000 in August 2023. Additionally, only 1% of blocks were BIP-110-supportive in the last period, which spanned from block 955,584 to 957,599.
THE SCENARIO
The dispute over BIP-110 is part of a broader discussion within the Bitcoin community about the network's scalability and the role of non-monetary transactions. The proposal has sparked a debate about the trade-offs between preserving Bitcoin's decentralization and preventing the network from being overwhelmed by non-monetary transactions.
DIRECT QUOTE
"There are 110 things more dangerous to Bitcoin than spam" — Michael Saylor, Executive Chairman, Strategy
BBN INSIGHT
The opposition to BIP-110 from Saylor and Back highlights the complexities of the issue and the need for a nuanced approach. On the one hand, the proposal aims to preserve Bitcoin's main use as a peer-to-peer cash system, which could be beneficial for the network's long-term stability. On the other hand, a fork could harm the network's credibility and decentralization, which are essential to its value proposition. The Positive Side of the proposal is that it could help to prevent the network from being overwhelmed by non-monetary transactions, while the Negative Side is that it could impose a temporary limit on the network's flexibility and innovation.