Bitcoin News Today: Bitcoin Splits Over Censorship: Forks Rise in the Fight for Data Freedom

A Bitcoin Ordinals developer has proposed funding an open-source fork of Bitcoin Core in response to concerns over potential censorship of non-financial transactions like Ordinals and Runes. The open letter from Leonidas, host of The Ordinal Show, was posted on X, signaling escalating tensions within the Bitcoin community over the prioritization of financial versus data-heavy transactions [1]. Leonidas warned that any attempt to restrict these transactions would trigger “decisive action” from the DOG Army, an informal group supporting Ordinals. The proposed fork aims to remove most policy rules in Bitcoin Core, ensuring the network remains “censorship resistant” [1].

This development comes amid a growing debate among Bitcoin stakeholders, particularly following statements from Blockstream CEO Adam Back, who argues that non-financial transactions, such as images or videos, are spam and should not occupy space on the blockchain. The controversy centers on whether Bitcoin nodes should prioritize peer-to-peer financial transactions and potentially ignore or block other types of data. Critics of Ordinals transactions argue they can lead to spam, while proponents defend their role in fostering innovation and new use cases [1].

Bitcoin Knots, an alternative implementation of Bitcoin Core, has gained traction, with its node count growing from 67 in March 2024 to over 4,380 today, representing more than 18% of the network. This surge in adoption coincides with Bitcoin Core’s upcoming v30 release on Oct. 30, which will remove the 80-byte limit on the OP_RETURN function, enabling significantly more media files to be stored onchain. The timing has heightened concerns that Bitcoin Core developers may roll back these updates in response to community pressure [1].

Leonidas emphasized that the Ordinals and Runes ecosystems have contributed over $500 million in transaction fees, bolstering Bitcoin’s network security. With the block subsidy from mining continuing to halve over time, these fees have become increasingly vital for sustaining network security. The developer has also engaged with miners representing more than 50% of Bitcoin’s hash rate, who reportedly agree to accept transactions as long as the fees are competitive. However, the volatility in Ordinals activity—peaking at $9.99 million in daily fees on Dec. 16, 2023, and dropping to just $3,060 on Aug. 31—underscores the unpredictable nature of this revenue stream [1].

The debate over Bitcoin’s role in handling non-financial transactions reflects broader ideological divides within the community. While some, like Ocean Mining’s Luke Dashjr and Satoshi Action Fund’s Dennis Porter, support stricter policies, others argue for a more open and inclusive approach. The outcome of this debate could influence the future of Bitcoin’s development, with forks and alternative implementations gaining prominence in shaping the network’s direction [1].

Source: [1] Ordinals dev floats forking Bitcoin Core amid censorship concerns (https://cointelegraph.com/news/ordinals-leader-threatens-bitcoin-core-fork)