BIP-110 is approaching a key activation phase, according to Bitcoin Magazine, with the proposal expected to enter its mandatory signaling period around Aug. 9 at block height 961,632. Lock-in is projected for late August at block 963,648, followed by activation of new transaction rules in early September at block 965,664. The proposal uses a 55% signaling threshold, and its restrictions would remain in force for 52,416 blocks, or about one year. Those restrictions target transaction features including large data pushes, oversized output scripts, undefined witness versions and the Taproot annex, while exempting UTXOs created before activation and keeping standard monetary use compatible. The report says most businesses are unlikely to need any changes, especially firms that hold bitcoin as a store of value or rely on third-party payment providers. The main operational concern is a potential chain split. In that case, miners may need to back the branch they expect to win or pause operations, while exchanges and custodians should raise confirmation thresholds, monitor both chains and delay final settlement to reduce the risk of double spends and false confirmations.
BIP-110 is moving into a critical activation phase, according to Bitcoin Magazine.
The proposal is expected to enter its mandatory signaling stage around Aug. 9 at block height 961,632. It is projected to lock in later in August at block 963,648, with the new transaction rules set to activate in early September at block 965,664.
What BIP-110 would restrict
BIP-110 uses a 55% signaling threshold. Its restrictions would be enforced for 52,416 blocks, roughly one year.
The proposal mainly limits large data pushes, oversized output scripts, undefined witness versions and the Taproot annex. UTXOs created before activation would be exempt, and standard monetary use would remain compatible.
Most businesses may not need to act
The analysis said most companies would not need to take action. Businesses that primarily use bitcoin as a store of value, or process payments through third-party providers, would be largely unaffected.
Companies running their own full nodes can decide for themselves whether to switch to a BIP-110 node.
Fork risk is the main issue for miners and exchanges
The central risk to watch is a chain split. If a fork happens, miners should choose the branch they expect to prevail or pause and wait.
Exchanges and custodians should raise confirmation requirements, monitor both chains and delay final settlement to guard against double-spend attempts and false confirmations. If no fork occurs, no special action would be required.
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