Bitcoin Improvement Proposal (BIP)

A Bitcoin Improvement Proposal (BIP) is a mechanism for introducing new ideas to the Bitcoin network. With the absence of a hierarchical or defined organizational structure in Bitcoin, a standardized process was necessary to facilitate the introduction of new concepts and changes to the protocol.

The format for future BIPs was established in 2011, with inspiration drawn from the proposal system used for making changes to the Python language. All BIPs can be found on GitHub and are publicly available for anyone to access and contribute to.

BIPs are categorized into three types: Standards Track, Informational, and Process. Each type serves a different purpose within the Bitcoin community.

What are Standards Track BIPs?

Standards Track BIPs are specifically related to changes in the protocol or validation methods of Bitcoin. These proposals aim to improve or enhance the functionality and security of the network. They require community consensus and must be given serious consideration.

One notable example of a Standards Track BIP is BIP 141, also known as Segregated Witness (SegWit). SegWit was proposed as a soft fork to enhance network capacity and address transaction malleability. This BIP required a 95% majority among miners to be accepted and implemented.

What are Informational BIPs?

Informational BIPs serve the purpose of education or raising awareness within the Bitcoin community. These proposals may cover a wide range of topics, such as explaining technical concepts, providing analysis, or presenting research findings. While the Bitcoin community has the option to accept or ignore Informational BIPs, they can still contribute valuable insights and knowledge to the ecosystem.

What is the process of BIPs?

Process BIPs propose changes to the processes or governance of the Bitcoin protocol. These proposals focus on improving the decision-making mechanisms within the community or suggesting modifications to the development and implementation processes. Just like Standards Track BIPs, Process BIPs require community consensus and careful consideration.

It is important to note that while BIPs provide a formalized process for proposing changes to the Bitcoin network, they are not enforceable. Even if consensus is reached within the community regarding a BIP, each developer has the freedom to choose which codebase they utilize. This flexibility is one of the core principles of the decentralized nature of Bitcoin.

Additionally, individual Bitcoin users are not obligated to use a specific version of the code. While certain changes, such as modifications to the user interface, may not require a BIP at all, significant protocol changes, such as hard forks, typically go through the BIP process to ensure community agreement and participation.

The lifecycle of a BIP involves several stages. It starts with the drafting or “triaging” phase, where a BIP is proposed, reviewed, and potentially rejected, withdrawn, or deferred. If a BIP is accepted, it enters the active stage, where it is implemented, tested, and refined. Finally, a BIP may become obsolete or be replaced by a newer version or proposal.

Most BIPs originate from discussions and debates on various community platforms, such as mailing lists, forums, or social media channels. These discussions are essential for gathering feedback, refining ideas, and building consensus among developers, miners, users, and other stakeholders of the Bitcoin ecosystem.

Overall, Bitcoin Improvement Proposals play a crucial role in the ongoing development and evolution of the Bitcoin network. They provide a structured process for proposing, discussing, and implementing changes to the protocol, ultimately contributing to the growth and improvement of the entire cryptocurrency ecosystem.