What is Bitcoin Improvement Proposal (BIP)?

The Bitcoin Improvement Proposal, also known as BIP, is a proposal that was drafted in compliance with the official guidelines in order to improve the Bitcoin code.

The Bitcoin Improvement Proposal (BIP) framework was created with the intention of standardizing the process by which significant alterations can be made to the Bitcoin source code. The fact that the suggestions are kept in the repository as text files means that the content of such files as well as their history can be accessed by any user.

Why are BIPs Essential?

Bitcoin is a digital protocol that has been implemented as a computer program. It is continuously updated, which includes the removal of defects, the enhancement of algorithms, the simplification of the code, the maintenance of compatibility with other applications, and the addition of new features.

Because it is a decentralized open source system, the very first cryptocurrency does not have a central governing body or organization that is responsible for its development. Because of this, choices regarding upgrades are made by the community of independent developers, and BIPs serve as a mechanism to formalize and open up the process of updating the Bitcoin code.

A unique serial number is assigned to every proposal that is published as a BIP. The primary applications for the framework are protocol updates and significant alterations. Going through this process is not required for every update that is made to the Bitcoin code, such as when changes are made to the user interface design or when bugs are fixed.

Who started to use  BIP to make updates to the Bitcoin code?

In 2011, a British-Iranian programmer named Amir Taaki presented the world with the first proposal (known as BIP1) with the intention of enhancing the functionality of bitcoin. It was a development proposal for PEP, which is used to improve the Python programming language, that served as the source of his inspiration. The BIP procedure is comparable to the RFC in that it contributes to the enhancement of the Internet.

How Much Time Does it Take to Add BIP functionality to Bitcoin Code?

The implementation of a BIP is a time-consuming procedure that can take many years to complete.

In order for the plan to move forward, it needs to receive support from approximately 95% of the miners, and the node operators need to upgrade to the most recent version of the software.

After the Bitcoin Improvement Proposal (BIP) is approved, it is incorporated into the source code of Bitcoin Core, the primary Bitcoin program, and is then activated. There can be a significant gap in time in between each of these actions. This is exactly what took place with the Taproot proposal: it was approved and included in Bitcoin Core in October 2020, however the feature wasn’t activated until November 2021.

In most cases, a BIP is subject to being rejected if there is no movement toward the goal within three years of the proposal being presented.

What are the BIP format Standards?

A proposal that establishes the standards that are used by the software and pertains to modifications in the bitcoin protocol is referred to as a standard (Standards Track BIP).

An offer of an informational character is referred to as an informational BIP. Contains a draft of general advice to be given to the community; does not offer a new feature; does not require the consensus of the community.

The Basic Improvement Proposal, also known as Process BIP, is a proposal that aims to improve the fundamental processes involved with the bitcoin ecosystem.

Which BIPs have gained the most popularity?

Both BIP-8 and BIP-9 are procedural proposals that provide a common framework for activating an upgrade soft fork for a blockchain. These frameworks are known as BIP-8 and BIP-9, respectively.

BIP-141 (SegWit) is a proposal that rearranged the way in which data is kept in blocks, removed the “transaction malleability” issue, and provided a standard format for Segregated Witness (SegWit) addresses. These changes were made in order to improve the security of bitcoin transactions.

Taproot is one of the most significant upgrades since it combines numerous different suggestions all at once. These include BIP-340, BIP-341, and BIP-342. Bitcoin’s scalability and anonymity have both been improved as a result of this upgrade.

Overall Information

Any user can propose the idea of BIP; however, in order to add the first cryptocurrency to the code and finalize the activation, it needs to be authorized by both the developers and the miners.

In most cases, a BIP will only comprise one major update in order to keep the process of discussion as straightforward as possible. These offerings do not include any minor updates or bug fixes that may be necessary. There are BIPs that are more informative or procedural in nature.