BIP-110 AGREEMENT, THE WAY BITCOIN LEADS TO MILLIONS OF DOLLARS

This post is part of our special coverage Syria Protests 2011

Original by Aididiao JP, Foresight New

The unlicensed implementation of the Bitcoin monetary policy, the distributed nodal network, is the only source of credibility for moving Bitcoin from zero to $125,000。

Achieving the $1 million target requires the same level of credibility, but it must be large enough to meet the need for sovereign wealth funds and central banks to hold assets for decades。

Please understand very clearly that the network and node are being systematically attacked, while Bitcoin Core opens the door for it. But for the first time since the attacks began, there is a real proposal on the table that will stop all of this。

This paper explains the attack, the evidence behind the rehabilitation programme and why the road to $1 million must pass directly through it。

What makes bitcoin valuable

The full value of the Bitcoin claim is based on a monetary guarantee。

The total amount of bitcoin will always be 21 million, and this limitation is enforced by a distributed nodal network that independently validates every transaction. This assurance was created because ordinary people around the world could easily run nodal software to implement it。

This is where bitcoin differs from all other centralized "encrypted" projects. There is a foundation in the Ether factory; Solana has a small number of certifications for running business hardware; and XRP has Ripple Labs. Each of these projects has a central bottleneck, which may be subject to pressure, subpoenas, sanctions or direct persuasion to change the rules. Bitcoin does not exist because any person with a common computer and Internet connection can operate a fully certified node, without a licence, without an intermediary or trusting anyone, directly interact with a monetary agreement。

Gold requires trust assessors, bonds trust governments, and stocks trust auditors. Bitcoin just needs to trust math and run its nodes。

The nodal operator of each certification chain is a vote on monetary policy. The more nodes, the more decentralized the certification, the more credible the assurance appears to be for those who can move assets to seven-digit levels of capital。

Thus, when something threatens the accessibility of running nodes, it threatens the value and very existence of bitcoin。

Everything starts with a loophole

Bitcoin Core uses garbage trade filtering as a standard feature from day one. Since 2013, node operators have been able to set limits on the additional data size embedded in the transaction through a configuration option called -datacarrierize, a deliberate design decision. Developers who construct and maintain the agreement understand that, without the size limits on non-monetary data, block chains will inevitably be misused as cheap data storage systems at the expense of each node operator on the network。

This system has been running for 10 years. Then, in early 2023, Casey Rodarmor launched the Ordinals agreement, and the dam is over。

Ordinals used a loophole in Bitcoin Core's spam filter. The existing data carrier restrictions have never been extended to cover the Taproot transactions that were introduced in November 2021. This means that anyone can circumvent the data size limit that should prevent such misuse by disguised data as a program code in Tapscript, using an OP_FALSE OP_IF that will never actually be implemented. Images, text files, BRC-20 token foundry and all other forms of non-monetary data can now be permanently embedded in the Bitcoin block chain at a cost far below normal data transactions, thanks to SegWit witness discount subsidies designed to reduce the cost of signing certification。

@LukeDashjr identified this as a loophole from the beginning. In December 2023, he officially registered the loophole in the NIST national loophole database as CVE-2023-50428 and received a medium severity rating of 5.3. The official description is precise: “In Bitcoin Core 26.0 and earlier and before Bitcoin Knots 25.1. knots 20231115, by confusing data with codes (for example, using OP_FALSE OP_IF), the data carrier size limit can be bypassed, as was used in 2022 and 2023. I don't know

Luke is clear about what that means. "Spoken mail filters have been a standard part of Bitcoin Core since day one," he explains. The failure to extend these filters to Taproot transactions was an error, and the inscription is using this error to attack the network. "The damage it caused to users of bitcoin and bitcoin, including future users, is enormous and irreversible," he wrote. "No one has ever allowed Ordinals. It was a bitcoin attack from the beginning. I don't know

Bitcoin Knots was achieved by alternative nodes maintained by Dashjr, and CVE-2023-50428 was repaired in version 25.1 at the end of 2023. The restoration was immediately deployed at the Ocean mine, declaring that its blocks would now contain "more real deals" and characterizing Ordinals as a denial-of-service attack on the network。

Bitcoin Core never fixed it。

A formal loophole registered in NIST was rated, used in millions of transactions, adding a gigabytes of permanent swelling to each full node of the network, while the majority of the major nodal software used by the Bitcoin network refused to repair it. Patches exist, tested and put into production on Knots. Core chose not to apply it and instead went further in the opposite direction。

Core 30: Taxation of each node

When BIP-110 proposes to protect nodes from data swelling, Bitcoin Core 30 moves in the opposite direction. Core 30, instead of repairing CVE-2023-50428, completely removed the long-standing OP_RETURN size limit, opening the door to unlimited random data in OP_RETURN output。

Core developers argue that the existing 80-byte limit has been circumvented in any case, so there is no point in maintaining it. It's like a city council stopping speed limits because of speeding, which is a direct violation of the 10-year precedent pointed out by Dashjr。

Bitcoin Core has maintained data carrier size limits since 2013, as developers understand that protection area space from non-monetary abuse is essential to maintain accessibility of nodes, and Core 30 has abandoned this principle。

THE ACTUAL EFFECT IS TO TAX THE OPERATOR OF EACH NODE. UNLIMITED OP_RETURN DATA IMPLIES AN UNLIMITED INCREASE IN DATA THAT MUST BE DOWNLOADED, VALIDATED AND STORED AT NODES. AND FOR WHAT? THE BENEFICIARIES OF THIS CHANGE WERE A SMALL GROUP OF DEVELOPERS WHO BUILT NON-MONETARY APPLICATIONS ON BITCOIN, WHO FELT THAT THE EXISTING RESTRICTIONS WERE NOT CONVENIENT。

Jameson Lopp argued for this change on the grounds of "extreme marginality" that had nothing to do with the function of bitcoin as a currency, but had nothing to do with his "building on bitcoin" initial VS company, Citrea。

People hate this。

In 2013, Core introduced data carrier restrictions to protect nodes from data litter. These restrictions have been in effect for 10 years. In 2023, a loophole allowed the inscription to bypass those restrictions through Taproot, and Core refused to repair it。

In 2025, Core completely lifted the restrictions. Each step makes the node heavier and more costly to run, and each step further departs from the principle that bitcoin block space serves currency transactions。

This is a fundamental contradiction in the current development of bitcoin. One faction wants to maintain the network as a lean, accessible currency agreement, and anyone can validate it with strawberry pie。

Another faction wants to expand the capacity of the agreement to accommodate any creative examples that developers can think of, and they are willing to make nodes heavier and more expensive to achieve this goal。

The first group is moving towards a $1 million bitcoin, and the second group is moving towards a "better version of the Ether House"。

DATA: BIP-110 WHAT ACTUALLY HAPPENED

@CunyRenaud has just released a modified simulation of BIP-110 covering 10 days of data on the main network, with block heights ranging from 929,592 to 931,032。

The results are unambiguous。

Of the 4.7 million transactions during the sample period:

1,957,896 WERE FILTERED OUT BY BIP-110 (41.5 PER CENT OF ALL TRANSACTIONS)。

747.85 MB BLOCK SPACE (36%) RECOVERED。

Zero legal financial transactions were prevented。

No currency transfer was captured by filters in nearly five million transactions. Each payment, each cash transaction, every lightning channel opened, every CoinJoin, every extra cost passed successfully。

The breakdown reveals an important fact that was largely overlooked in this debate. The communities have always treated the inscriptions of Ordinals and OP_RETURN trash as two separate issues, which are not。

94.6% of the adhesion transactions captured by BIP-110 are mixed transactions with Tapscript OP_IF encapsulation and OP_RETURN output containing metadata. When BIP-110 filters the inscription, the associated OP_RETURN data disappears。

THE STORY OF "TWO GARBAGE PROBLEMS" COLLAPSED IN FRONT OF THE DATA. BITCOIN HAS ONLY ONE GARBAGE PROBLEM, BUT THERE ARE TWO MANIFESTATIONS, AND BIP-110 SOLVES BOTH。

Rules for assuming heavy responsibilities

BIP-110 contains multiple rules, but rule 7 is most critical. It prohibits the use of OP_IF and OP_NOTIF codes in Tapscript execution. This is about the mechanism described in CVE-2023-50428, or Ordinals, which is used to encapsulate OP_FALSE OP_IF, which embeds any data into witness space。

Rule 7 alone captures 1,954,477 transactions in simulations, representing 99.8 per cent of all filtered transactions. In fact, it is a patch that Core refuses to issue and is now being translated into a consensus rule with a one-year activated window。

The obvious question is whether this would undermine any real function. Simulations specifically search for legal Tapscript contracts using OP_IF, including conditional branches, time locks, threshold signatures and Hash time lock contracts。

The answer to the 4.7 million transactions is zero, and these models do not exist in today's main web, Tapscript. The lightning network is still operating on SegWit v0, DLC signatures with adapters, while vault realization is still at the experimental stage。

THE THEORETICAL CONCERN THAT RULE 7 COULD IMPEDE FUTURE SMART CONTRACTS IS ACKNOWLEDGED. IT IS POSSIBLE, BUT BIP-110 IS ACTIVE FOR ONE YEAR, NOT FOREVER. THE PROLIFERATION OF SLOGANS IS NOW TAKING PLACE, AND DAMAGE TO UTXO COLLECTIONS ACCUMULATES DAILY。

A one-year intervention that removes 41.5 per cent of transactional waste without deterring any financial activity is a trade-off in support of action。

Bitcoinismoney

SOME WOULD ARGUE AGAINST BIP-110 ON THE GROUNDS THAT "ALL TRANSACTIONS THAT PAY FEES ARE LEGAL". USERS OF THE INSCRIPTIONS PAID MARKET RATES, AND MINERS VOLUNTARILY ACCEPTED THEIR TRANSACTIONS, WITH WHICH AUTHORITY TO FILTER THEM OUT

The answer lies in understanding what and why Bitcoin actually protects。

Bitcoin's resistance is designed to guarantee currency transactions. Workload certification, difficulty adjustment, block incentive schemes and the security model as a whole were designed to protect a point-to-point electronic cash system。

That design, that single purpose, justifies the huge energy consumption needed to protect the network。

CURRENCY TRANSACTIONS IN BITCOIN ARE NOT SUBJECT TO REVIEW. THIS IS PRECISELY THE ATTRIBUTE THAT GIVES VALUE TO BITCOIN AND IS ALSO THE ATTRIBUTE THAT BIP-110 RETAINS IN ITS ENTIRETY. IF YOU'RE SENDING OR RECEIVING BITCOIN AS MONEY, BIP-110 WON'T AFFECT YOU. THE SIMULATION PROVED THIS EMPIRICALLY. TWO AND A HALF MILLION FINANCIAL TRANSACTIONS PASSED WITHOUT ANY IMPACT。

THE EXISTENCE OF NON-MONETARY TRANSACTIONS DEPENDS ON THE TOLERANCE OF NETWORKS. THEY WERE NOT BANNED BY DECREE AND NO ARRESTS WERE MADE OF USERS OF THE INSCRIPTIONS. THE ARGUMENT IS SIMPLE: THE STORAGE OF NFT DATA IN WITNESS SPACE AND TOKEN CASTING INSTRUCTIONS DOES NOT ENJOY THE SAME PROTECTION AT THE LEVEL OF AGREEMENT AS THE TRANSFER OF VALUE BETWEEN PEOPLE. WHEN NON-MONETARY USE BEGINS TO THREATEN THE INFRASTRUCTURE THAT MAKES CURRENCY USE POSSIBLE, NETWORKS HAVE EVERY RIGHT TO PRIORITIZE THEIR CORE FUNCTIONS。

This is not a review. The review was when the Government stopped you from paying because it did not like your political stance. Filtering of data storage operations using loopholes that should have been repaired many years ago is network maintenance. This distinction is important, and anyone who confuses the two is either confused or malicious。

Dashjr makes this clear when critics believe that miners will never voluntarily stop trading in inscriptions: "bitcoin's operating assumption is that most miners are honest, not malicious. The security model assumes that mining unions act for the long-term benefit of the network, not to maximize the revenue from short-term fees to the detriment of infrastructure that makes them valuable。

Road to $1 million

Imagine explaining bitcoin to a sovereign wealth fund manager in 2028. You are arguing that such assets deserve the same permanent allocation as gold and national debt。

This argument is based on three pillars: fixed supply, counter-censorship transactions and decentrization certification. If any of those pillars were weakened, the case would be weakened. If supply plans can be changed, Bitcoin is just another better market. If transactions can be reviewed, Bitcoin is just a slow database。

If the validation is concentrated in a few data centres because the operational nodes become too expensive, then the currency guarantee of Bitcoin becomes a gentlemen ' s agreement implemented by entities with identifiable interests and political pressure points。

THE UTXO SWELLING, DRIVEN BY THE INSCRIPTION, DIRECTLY ATTACKED THE THIRD PILLAR. IT MAKES NODES MORE EXPENSIVE, CONCENTRATES CERTIFICATION AND UNDERMINES THE DECENTRIZATION OF MONETARY GUARANTEES. ALL OF THIS IS DONE TO PROVIDE A SERVICE THAT IS NOT MONETARY AND CAN BE ACCOMPLISHED MORE EFFICIENTLY ON A SYSTEM SPECIFICALLY DESIGNED FOR SPECIFIC PURPOSES。

Any data storage is a problem that has been resolved and Bitcoin does not need to be Filecoin。

At the same time, the trajectory of Core from refusing to repair CVE-2023-50428 to actively removing OP_RETURN restrictions from version 30 shows that the current development leadership is willing to serve non-monetary purposes in order to make nodes more swollen. BIP-110 resisted this trajectory, indicating that the priority of the network is the currency, that nodal networks exist to validate the currency, and that the agreement should optimize it。

BIP-110 Eliminate the adage attack vector for one year, without prejudice to every financial transaction on the network. It eliminated 41.5 per cent of the waste trade and recovered 36 per cent of the block space. Of the 4.7 million transactions tested, it produced zero misstatement. And it retains the option to reassess once the data used on valid Tapscript becomes clearer。

The road to a $1 million bitcoin is paved by the credibility of monetary policy, the credibility of resistance to censorship and the credibility of the decentrization of certification networks for both。

The success of $1 million in bitcoin is linked to the nodal network。

What can you do

If you run a node, you have a say in it。

Study BIP-110 norms. Read the simulation data released by Bitcoin Block Space. If you have the skills, you can calculate the data yourself. And then tell you what to think and make your decision based on the evidence, not the most loud sound on social media。

If you're ready to act, switch from Bitcoin Core to Bitcoin Knots easier than most people think. If you run Umbrel, Start 9, MyNode or RaspiBlitz, Knots can install one key in your application market, and your existing block chain data can be transferred. If you run Core on desktop or naked machine Linux, moving is equally simple and direct. Either way, you can run Knots in minutes and enforce BIP-110。

Every point to switch to Knots is a vote for the future of the bitcoin as a currency, and each vote is important。

The data are clear, the trade-off is honest, and the window period is one year. The cost of inaction is the bloated daily permanent data for each of the network ' s nodes。

BITCOIN IS MONEY, AND BIP-110 KEEPS IT SO。

Bitcoin as a non-monetary random data relay and storage will not be viable。

If you believe this, then you are running a sovereign, anti-censorship node, using bitcoin as a currency without a permit。