Ledger: BIP-110 Lack of Replay Protection, Risk of Transferring or Selling Forked Coins or Endangering Main Chain Assets

August 9th, hardware wallet manufacturer Ledger issued a security advisory regarding the BIP-110 fork. Ledger stated that BIP-110 is a Bitcoin soft fork proposal that does not include built-in replay protection. If a separate chain is formed, BTC holders may receive an equal amount of corresponding assets on the new chain, but initially, both chains may accept the same signed transactions.

If users attempt to transfer or sell assets on the BIP-110 chain, the related transactions may be "replayed" on the Bitcoin main chain, resulting in the simultaneous transfer of the corresponding BTC. Ledger stated that its devices can technically sign these transactions but advised against claiming or operating BIP-110 forked coins until a replay protection mechanism is implemented.