The Bitcoin network has produced its first block supporting BIP-110, sparking debate over restrictions on the use of on-chain data.

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According to Mars Finance, market sources indicate that the first block supporting the BIP-110 proposal has appeared on the Bitcoin network, mined by the Ocean mining pool. This proposal aims to limit arbitrary non-financial data in blockchain transactions for approximately one year through a temporary soft fork. Supporters argue that this can curb "junk" data that consumes block space, protect Bitcoin's role as a robust monetary infrastructure, and reduce the burden on node operators. The proposal has sparked intense debate within the community. Critics, such as Blockstream CEO Adam Back, warn that consensus layer intervention could damage Bitcoin's credibility, leading to differential treatment of transactions and violating the principle of transaction capacity neutrality. He also questions the proposal's actual support, stating it could increase the risk of a blockchain split. The controversy escalated further when a developer embedded a 66KB image in a Bitcoin transaction to oppose the core claims of BIP-110 and demonstrate that large amounts of data can be encoded even without relying on OP_RETURN. This debate highlights a long-standing ideological divide within the Bitcoin community: whether to staunchly defend Bitcoin's pure monetary status or maintain maximum neutrality towards any use of the underlying layer.

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