What are Bitcoin Development Proposals (BIPs)?

Bitcoin is a digital currency, and it's made up of software, hardware, and energy. People control it using its computer code.

Bitcoin doesn't have a boss. People who use it decide how it changes. They use something called Bitcoin Development Proposals (BIPs).

Making Bitcoin better takes time. Sometimes, we don't need a BIP for small changes, like making it look nicer. But for big changes, we use BIPs.

A BIP is a way to talk about new ideas and changes for Bitcoin. A person named Amir Taaki started the first BIP in 2011.

How BIPs Start

People get ideas from talking or on social media. They can save time by checking if someone had the idea before. It has to follow some rules.

Anyone can be a "BIP Champion." They make the idea look right and talk to others about it.

Who Can Make BIPs?

People who like Bitcoin, like computer people and regular users, can make BIPs. They also say what version of Bitcoin they want to use.

Image taken from freepik

How BIPs Work and How They are Accepted

When the initial proposal gets support, the "BIP Champion" sends it to the editor. They check it and put it online. Everyone can see if it's good.

If nothing happens for three years, it's a no progress towards development. We need miners to agree. Usually, 95% say yes, unless there's a good reason.

For example, BIP 341 with Taproot in April 2021 got most miners to agree in two weeks with the help of quick trial code. But the final approval came later in November.

Steps for approval:

• Anyone can upload a Bitcoin development proposal.
• The editor must review the draft and approve it for publication.
• The Development Proposal (BIP) must have a minimum 95% acceptability rate - except in exceptional cases.
• The entire community must then upgrade to the new software version.

Types of BIPs

There are three types:

A. Bitcoin Development Proposals (BIP) Standard: They are known as Bitcoin source code standards like virtual wallets or exchanges and aim to change the protocol. Moreover, to be approved they need consensus.

B. Informational Bitcoin Development Proposals (BIP): They have only a general and informative purpose, to show the community what's new.

C. Consensus Bitcoin Development Proposals (BIPs): Also known as procedural BIPs, they are similar to standard ones in that they require consensus despite the fact that they contain changes outside of the Bitcoin protocol. These changes require explicit activation in the Bitcoin blockchain.

Than you for reading