Bitcoin Fork BIP-110 Mines Two Blocks, Then Stalls

The Fork Launches and Stalls

A controversial Bitcoin fork based on BIP-110 successfully mined its first two blocks before transaction confirmation times extended to hours. The breakaway chain inherited Bitcoin's mining difficulty without receiving a proportional share of the network's hashpower, creating a compounding problem: each block requires exponentially more work to produce, while the tiniest fraction of miners continue to direct their hardware toward the fork.

Why the Difficulty Problem Persists

Bitcoin's consensus rules adjust mining difficulty every 2,016 blocks to target a 10-minute block interval. The fork retained these rules but launched with minimal miner participation. A difficulty retarget requires roughly 2 weeks of blocks at the fork's actual hash rate; until then, the chain remains locked at Bitcoin's current difficulty threshold. With only a sliver of hashpower securing the fork, block times have extended from Bitcoin's 10-minute target to multi-hour intervals.

Transaction Compatibility Remains

Both the original Bitcoin chain and the BIP-110 fork continue to accept and validate the same transaction formats. Crucially, either chain can process transactions from users or merchants who choose to operate on it—there is no technical incompatibility at the transaction layer. The fork's viability hinges on whether miners choose to redirect hardware toward it and whether users find a compelling reason to transact on a chain where confirmation takes hours rather than minutes.

Why It Matters

For Traders

The fork remains illiquid and unpriced on major exchanges; exposure is speculative and settlement risk is acute given confirmation delays.

For Investors

A fork that cannot sustain block production demonstrates the critical role of mining incentives and network effect in blockchain security; inherited difficulty without hashpower is a fatal constraint.

For Builders

This illustrates why new chains either launch with subsidized mining, pre-mine coin for mining pools, or implement rapid difficulty adjustment rules that Bitcoin's fixed schedule does not support.