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Crypto Terms:  Letter B

What is Bitcoin Improvement Proposal (BIP)?

Bitcoin Improvement Proposal (BIP) - is a collection of documents that propose specific modifications to Bitcoin.
2 minutes

Let's find out Bitcoin Improvement Proposal (BIP) meaning, definition in crypto, what is Bitcoin Improvement Proposal (BIP), and all other detailed facts.

Bitcoin doesn't have a defined structure or organizational regulations, meaning that there is a different standard for suggesting new ideas and changes to Bitcoin. These ideas can be proposed by almost anyone, regarding the development process or community standards.

BIP doesn’t have a centralized leader, and the process is organized by the Bitcoin community.

2011 was the year when the first-ever BIP was released, and every BIP can be seen on GitHub.Bitcoin. BIPs usually begin as developers email their proposals to the email list, and if anyone is intrigued, they will respond. However, not every idea gets a response. Some remain in discussion for several years.

Once the idea is optimized, it gets a BIP number and gets posted to GitHub.Bitcoin, the database for BIPs.

The proposals have three categories:

  • Process BIPs. These are the proposed process improvements that are not part of the Bitcoin protocol.
  • Standards Track BIPs. These refer to changes to the protocol or validation techniques.
  • Informational BIPs. Intended to teach and promote awareness.

Process and Standards Track BIPs have to be evaluated and debated within the community. However, if the community wants, the informational ones can be overlooked.

It’s important to note, though, that some changes and modifications don’t need BIP.

A great example of BIP is the confidential transactions proposal by Gregory Maxwell. It was accomplished through Pedersen Commitment - a cryptographic tool. This tool hides the values in a transaction, making everything anonymous.