Bitcoin activates BIP-110 at block 961,632

Bitcoin just locked in block 961,632, activating the highly debated BIP-110 soft fork proposal that aims to improve transaction efficiency without splitting the network.

The move comes after months of debate among miners, developers, and node operators over Bitcoin’s scalability and upgrade methods. BIP-110 proposes adding new transaction types that bundle multiple payments into one, cutting fees and speeding up confirmation times. Supporters argue it’s a safer alternative to hard forks—upgrades that could split the chain. Opponents warn it centralizes control by giving developers more power over transaction rules.

Bitcoin’s network now processes around 900,000 transactions per day, but fees can spike during congestion, hitting over $60 per transfer last year. BIP-110 supporters say it would reduce average fees to under $1 for basic transfers. Miners are split: some have signaled readiness, while others prefer sticking to the original protocol. Core developers have not officially endorsed it, raising concerns it could create a fork in practice.

If widely adopted, BIP-110 could modernize Bitcoin’s transaction logic without risking a chain split. But resistance from purists and uncertainty over miner adoption could slow its rollout. Bitcoin’s next upgrade cycle is already under discussion, including potential Taproot integration. The success of BIP-110 may set a precedent for how future changes are made—whether through consensus or default adoption by economic majority.