ELI5: What the Heck is BIP-110? Imagine Bitcoin is a giant shared notebook that everyone uses to write down things like: “I paid you 0.05 Bitcoin.” For years, people mostly just wrote payment notes. Then in 2022–2023 some clever folks figured out how to paste huge pictures, memes, NFT art, and random junk directly into the notebook (this is Ordinals, inscriptions, BRC-20 tokens, Runes, etc.). The notebook got bloated. Fees went crazy for normal payments. Running a Bitcoin node (keeping a full copy of the notebook) became harder and more expensive. BIP-110 (also called the Reduced Data Temporary Softfork or RDTS) is basically a temporary rule that says: “For the next one year only… no more giant doodles in the notebook. Just write your money notes.” Technically it’s a temporary soft fork that:

• Limits how much arbitrary data you can stuff into transactions
• Restores the old 83-byte limit on OP_RETURN
• Caps data pushes at 256 bytes

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