Adam Back, an early developer of Bitcoin and the current CEO of Blockstream, has voiced strong concerns about storing images on the Bitcoin blockchain. He calls these images “JPEG spam.” Back believes this practice goes against Bitcoin’s core purpose as a simple monetary system. His comments, shared in a long thread on X, highlight a deep disagreement within the Bitcoin community.
This argument echoes past debates, like the “block size wars” from 2015 to 2017. Back then, users pushed back against miners who wanted to change the rules. This showed that Bitcoin is seen as something “owned by humanity,” with developers acting as caretakers. They need wide agreement for any major changes.
The Rise of Inscriptions
The ability to store images and other data directly on the network comes from the Taproot update and the Ordinals protocol. Data shows a clear increase in this activity. For example, the number of JPEGs stored on the Bitcoin blockchain grew from 88 million in May to 105 million in September. This is a 20% jump in just a few months.
The fees from these transactions are significant. They amount to about 7,000 BTC, which is roughly USD $777,000,000. This raises questions about how long this trend can last and what it means for the overall cost of using the network.
People who support these inscriptions say Bitcoin is a system without permissions. They argue it should not limit what kinds of transactions are included, as long as users pay for block space. They also point out that this activity increases financial rewards for miners. This is especially important because the reward for each block gets cut in half every four years.
Adam Back’s Concerns
Back, however, believes the actual benefit for miners is very small. He estimates that inscriptions add only 0.1% to miner earnings. This small gain is overshadowed by the potential problems. Back sees risks like harm to Bitcoin’s reputation, higher transaction costs for regular users, and less access to Bitcoin as a peer-to-peer money system.
He feels that too many images push out activities that truly strengthen Bitcoin’s value. This could weaken its standing as a trustworthy, decentralized financial network.
A Divided Community
This debate shows serious differences among Bitcoin users. Supporters view inscriptions as a fair use of the technology. They believe it makes the network more diverse. Critics, including Back, say it wastes space. They argue it gets in the way of Bitcoin’s main job: acting as digital cash and a payment system for people.
Back has suggested some ways to handle this. He mentioned talking with miners and mining pools to discourage these transactions. He also spoke about updating digital wallets. These changes could direct fees towards operators who refuse to process such data. However, he admitted that these steps could lead to more centralization. They need careful thought.
The discussion continues, showing the ongoing tension. Many wonder if Bitcoin is primarily a pure monetary system or also a platform for storing other digital assets.