Key conclusions
- Developer Chris Guida transferred the PoW algorithm change code to the Bitcoin Knots database as a contingency plan in case BIP-110 is not supported.
- The mandatory signaling window for BIP-110 starts at block 961,632, and current support from miners is only 2.59%.
- Infrastructure operators, including Start9, are shutting down Lightning Network channels en masse due to the risk of a chain split.
Developer Chris Guida has dusted off and updated the code that allows the Bitcoin network’s Proof of Work algorithm to be changed if miners reject the BIP-110 proposal. Originally written by Luke Dashjr in 2017, the solution has made its way into the latest Bitcoin Knots software database. The modification is intended to be a last resort as the patch activation deadline approaches. Support for changes on the part of mining entities remains at the level of only 2.59%, which, given the 55% threshold, almost guarantees the lack of an amicable agreement.
🚨 BITCOIN DRAMA THIS WEEKEND 👀 BIP-110 refuses to die despite almost ZERO support from Bitcoin miners. The wants proposal to restrict “spam” and non-financial data on Bitcoin, but miners have basically said: NO THANKS. 😂 Yet supporters are still pushing ahead with
What is the BIP-110 proposal and why does it cause conflict
Miners oppose these restrictions due to the high revenue from transaction fees generated by non-financial data. As a result, only 47 of the last 1,818 blocks signaled support for the new rule.
Changing the PoW algorithm as a nuclear option
If miners do not provide the required majority for block 961,632, BIP-110 enforcement nodes will start rejecting blocks that do not meet the new requirements. This may lead to a permanent break in the chain. In response, proponents of the fork have prepared a mechanism to change the SHA-256d mining algorithm to alternative hash functions such as SHA-256, RIPEMD-160 or HASH160.
Such a move would immediately exclude specialized ASIC devices from mining and strip existing pools of influence over the new network. Guida emphasizes, however, that the code does not have a fixed activation date and serves only as a scare against entities that ignore the will of node operators. The first block after the change would have its difficulty reduced by about a million times, which would prevent the chain from freezing.
Market reaction and paralysis of the Lightning network
Conflict at the consensus level paralyzes layer two of the Bitcoin network. Software provider Start9 announced the preventive closure of its node’s payment channels and advised users to do the same. If there is no replay protection after a possible split, funds invested in Lightning Network time contracts may be frozen.
The largest mining pools, such as MARA Pool and Antpool, have consistently remained silent on contingency plans. Knots make up a growing part of the visible network, but without computational power, their rules can only form an isolated minority chain.
This is a direct repeat of the events of 2017. Once again, the visions of economic domination of nodes and the real power of entities providing hash rates clash. The decisive clash will begin with the minting of block 961,632.
