The Bitcoin network has produced its first block supporting BIP-110, sparking debate over restrictions on the use of on-chain data.

CoinFeed reported on March 3rd that, according to CoinDesk, the Bitcoin network saw its first block supporting the BIP-110 proposal this week, mined by the Ocean mining pool. This proposal aims to limit arbitrary non-financial data in blockchain transactions for approximately one year through a temporary soft fork. Supporters argue that this can curb "junk" data that occupies block space, protect Bitcoin's role as a robust monetary infrastructure, and reduce the burden on node operators. The proposal has sparked intense debate within the community. Critics, including Blockstream CEO Adam Back, warn that consensus layer intervention could damage Bitcoin's credibility, leading to discriminatory transactions and violating the principle of transaction capacity neutrality. He also questioned the proposal's actual support, stating that it could increase the risk of a blockchain split.