BIP (Bitcoin Improvement Proposal) is a standard method used to promote changes and improvements in the Bitcoin protocol. It serves as an official document to introduce new features and transactions to the network. BIPs reflect the ideas and proposals of the Bitcoin community and contribute to the development of the protocol.

Bitcoin, as a blockchain, requires continuous development, which is achieved through regular upgrades. Upgrades may include bug fixes, algorithm changes, and improving the efficiency of the code. These upgrades enable the Bitcoin protocol to keep up with innovations and keep the blockchain up to date. Each upgrade is shaped according to the ideas and contributions of the Bitcoin community.

The Bitcoin protocol coordinates the upgrade and development processes without a leader in the community through BIPs. BIPs are formal documents that can change everything from consensus rules to community standards.

The first BIP that was accepted as a standard method was BIP 0001, which was first introduced in 2011 by a programmer named Amir Taaki to define the BIP. Each BIP can be viewed on GitHub.Bitcoin.

How Does the Bitcoin Improvement Proposal Work?

A proposal or suggestion is generally presented to the community through different communication channels such as email or Slack. At this point, initial feedback is received from community members and if the proposal receives enough support, the authors of the proposal can move on to the next stage and turn the proposal into a BIP.

The proposal should be written in the BIP format and include a short technical specification of the feature. The 'BIP Champion' takes responsibility for introducing the idea and building consensus around it, responding to feedback and questions. For the proposal to become an official BIP, it must have significant support from the community.

A BIP cannot be drafted without approval from the editor, so the proposal is first transferred to the draft list and assigned a BIP number by an editor. At the end of this process, BIPs are published in the Bitcoin Core GitHub repositories where they can be viewed by the public.

Once a BIP is officially created, it is prepared for feedback and review before entering the testing phase. A status is assigned to the BIP so that anyone can track and evaluate its progress.

The life cycle of a BIP is limited, and if no progress is made within three years after the proposal, it can be marked as rejected. This process is important to prevent ideas from remaining only theoretical and to prevent unsupported proposals from being a waste of time.

Who Can Propose Bitcoin Improvement?

Bitcoin, without any defined structure or organizational regulation, is a network open to ideas, changes, and regulations. But who can propose improvements for Bitcoin?

Changes in the Bitcoin protocol are not only made by developers and programmers. Bitcoin is an open network that allows anyone to participate in and submit BIPs. Therefore, the formation of BIPs occurs with the participation of members from all sections of the community, and everyone's contribution is equally important.

The approval of BIPs helps to adapt the Bitcoin protocol to the needs of the community and contributes to the development of the network with everyone's participation. As a result, the development of Bitcoin is achieved through the joint collective efforts of the community, and BIPs are formed with the participation of anyone who has the necessary knowledge and skills.

What Are the Types of Bitcoin Improvement Proposals?

There are three main types of BIPs: standard, informational, and process BIPs.

Standard BIPs

Standard BIPs refer to the standards used by Bitcoin software developers and include proposals for changes to the Bitcoin protocol. Therefore, a consensus is required for the approval of standard BIPs.

For example, a standard BIP may include suggested coding methods to ensure the security of Bitcoin, or interoperability scenarios necessary for wallets to recognize and transact with Bitcoin addresses.

These standards are important to ensure the Bitcoin ecosystem works in a compatible way. Wallets, exchanges, and other software must adhere to a certain standard to interact with each other. Standard BIPs help make the Bitcoin ecosystem more secure, stable, and user-friendly.

Informational BIPs

Informational BIPs do not aim to make any changes to the Bitcoin protocol. Instead, they contribute to the development of the Bitcoin ecosystem by providing general guidelines. Therefore, community consensus is not required for the approval of this type of BIP.

These BIPs can identify specific processes or methods used by Bitcoin software developers and the community.

Process BIPs

Consensus BIPs or process BIPs are specific BIPs that aim to change a process and require universal consensus. The changes may be outside of the Bitcoin protocol but must be accepted by all users of the network. Therefore, consensus changes require an explicit activation on the Bitcoin network.

BIPs provide an effective way for the development and upgrading of the currency as a decentralized component of Bitcoin governance. This is a critical factor for the success of the technology.