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2026-07-22 16:50:13

Hard Fork vs. Soft Fork: How Blockchain Upgrades Actually Work

Blockchain forks are protocol changes, but not all forks work the same way. Soft forks stay backward compatible, while hard forks break compatibility and can split a network into two chains. SegWit, Bitcoin Cash, and Ethereum Classic remain key examples.

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Hard Fork vs. Soft Fork: How Blockchain Upgrades Actually Work
Michael Saylo
2026-07-20 02:52:48

Michael Saylor Opposes BIP-110 as Bitcoin Miners Signal Just 0.86% Support Ahead of August Soft Fork Window

Michael Saylor, executive chairman of Strategy, has published a detailed critique of Bitcoin Improvement Proposal BIP-110, arguing that the proposal creates a larger governance problem than the spam issue it is trying to address. In a July 18 essay titled "110 Reasons Why BIP 110 Is a Bad Idea," Saylor said filtering certain data types through consensus changes would set a precedent that could later be used against privacy tools, stablecoin settlement, and other applications built on Bitcoin. BIP-110 is scheduled to enter its mandatory signaling phase around Aug. 7 and take effect on Sept. 1. As of mid-July, miner signaling support stood at 0.86%, far below the 55% threshold required to lock in the soft fork. The proposal would temporarily restrict several transaction formats used to carry non-payment data, including OP_RETURN outputs, witness items, Taproot annex data, control blocks, and some Tapscript paths. Those routes have been used by Ordinals and Runes-style inscription systems to write images and text to the blockchain. The debate has widened into a governance dispute. Saylor argues that Bitcoin’s edge comes from neutral and predictable base-layer rules, while supporters of BIP-110, including some Bitcoin Core developers, say non-payment data is consuming block space, raising full-node costs, and weakening Bitcoin’s role as electronic cash.

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Michael Saylor Opposes BIP-110 as Bitcoin Miners Signal Just 0.86% Support Ahead of August Soft Fork Window