Blockstream CEO Criticizes Bitcoin Proposal to Limit Data Storage

Blockstream CEO Adam Back has voiced opposition to a proposal aimed at reducing data storage on the Bitcoin network, warning that it could undermine the network's credibility. According to Cointelegraph, the Bitcoin Improvement Proposal (BIP-110), introduced by pseudonymous developer Dathon Ohm in December, has seen nearly 7.5% of Bitcoin nodes, specifically Bitcoin Knots clients, signal readiness for its implementation. The proposal seeks to temporarily limit the amount of data stored in Bitcoin transactions to curb the influx of images, videos, and other non-essential data. Back, while agreeing that Bitcoin should function as 'sound money,' expressed in a post on X that the proposed consensus-level change is unwarranted. He described BIP-110 as 'an attack' on Bitcoin's credibility as a secure monetary network, labeling the data influx as merely an 'annoyance' rather than a security threat. BIP-110 is intended as a temporary measure to reduce arbitrary data, allowing the Bitcoin community to assess its impact over 12 months while developers work on a long-term solution. The proposal has garnered support from validators using Bitcoin Knots, which gained market share from Bitcoin Core after the latter removed the 80-byte limit on the OP_RETURN function in late October 2025. This change allowed more non-financial transactions on the network, sparking debate within the Bitcoin community. Bitcoin Core's share of nodes has decreased from about 98% to 77.2%, while Bitcoin Knots' share has risen to 22.7%. Back, who opposed the removal of the 80-byte limit, argued in September that spam-like transactions have 'no place in the timechain.' He also warned that BIP-110 could potentially freeze funds by making certain unspent transaction outputs (UTXOs) unspendable. Ohm acknowledged this risk but emphasized that the proposal aims to avoid impacting any known use cases. Supporters of non-financial transactions, such as Bitcoin Ordinals leader Leonidas, highlight that the Ordinals and Runes ecosystems have contributed over $500 million in transaction fees, bolstering Bitcoin's security amid concerns over the diminishing mining block subsidy. However, Dune Analytics data indicates that by the end of 2025, Ordinals inscription fees were generating less than $10,000 per day for miners, challenging their reliance on non-financial transactions for revenue. Ordinal activity peaked over two years ago, with miners collecting nearly $10 million in fees on December 16, 2023, but fees have generally declined since then, with only occasional spikes.