BIP-110 soft fork is nearing activation, miners and exchanges need to pay attention to chain fork risks

According to Bitcoin Magazine, the BIP-110 soft fork is about to enter a critical activation phase. The proposal will enter the mandatory signaling phase around August 9, corresponding to block height 961,632, and is expected to lock in at block 963,648 by the end of August, with new transaction rules activated at block 965,664 in early September. BIP-110 adopts a 55% signaling threshold, and its restrictions will be enforced for 52,416 blocks (approximately one year).

BIP-110 mainly restricts transaction features such as large data pushes, oversized output scripts, undefined witness versions, and Taproot annexes, but exempts UTXOs created before activation, maintaining compatibility for standard currency use. Analysis indicates that most businesses do not need to take action—businesses that act as value storage or process transactions through third-party payment providers are essentially unaffected. Businesses running their own full nodes can choose whether to switch to BIP-110 nodes. The core risk to be aware of is chain forking. If a fork occurs, miners should choose the branch expected to prevail or pause and wait; exchanges and custodians should increase confirmation requirements, monitor dual chains, and delay final settlements to prevent double spending and false confirmation risks. If there is no fork, no special actions are required.