The Magical Ceremony of Bitcoin: How the Bitcoin Improvement Protocol (BIP) Was Created

Bitcoin is an open source network, and developers around the world have the right to contribute to network updates. Essentially, a Bitcoin Improvement Protocol (BIP) is a design document that brings new features or information to the entire network. Due to the open source nature of Bitcoin and the absence of a central authority in its system, Bitcoin software encourages developers to use BIP as a primary way to communicate opinions and exchange information.

The first BIP of the Bitcoin network was submitted by computer programmer Amir Taaki. The main content is about BIP, including the definition of BIP and how to integrate BIP with Bitcoin Core client.

Types of BIPs

In the Bitcoin system, BIPs can be roughly divided into three types: standard, informational, and process. All BIPs go through the same submission, review, and activation process, so the only difference between these three types of BIPs is the goals they want to achieve.

Standards BIPs are submitted with the intent to change network protocols or other operational modes or functions that would affect interoperability, including transaction validation and block size parameters.

Informational BIPs focus on solving design problems and establishing general guidelines. Unlike standard BIPs, these BIPs usually propose completely new network features.

Process BIPs are roughly similar to standard BIPs, with the main difference being that they propose process changes outside the Bitcoin protocol.

How was the BIP passed?

BIP 0001, also known as the Taaki proposal, does not clearly explain how BIPs are implanted into the Bitcoin Core client. Although the infographic in the content of the agreement details the BIP submission process, it only gives a comprehensive description of the drafting and integration methods, and does not detail the verification and approval process.

As can be seen from the diagram drawn by Taaki, after a BIP draft is written by a developer, it will be submitted to the open source "repository" of the Bitcoin network. Then multiple developers will verify the feasibility of the protocol and choose whether to pass it. Once passed, a series of integration processes can be viewed on Github.

In addition to this general process, there are several special operating details that need to be paid attention to before the BIP is fully passed.

First, a BIP developer or designer must explain to the Bitcoin development team how his BIP can improve the Bitcoin network and its core components. Only after the core developers agree and approve the idea can the designer actually start drafting his BIP.

Once the draft is complete, the BIP designated editor Luke Dashjr will assign a specific BIP number. Once the BIP is accepted by the majority of community members and developers, the technical implementation process will begin.

BIPs supported by Bitcoin Core

Bitcoin Core has also passed several BIPs that have a positive impact on wallets, protocols, and the network.

There are currently 27 BIPs that have been embedded in the Core client, with the most notable being BIP 0011 (multi-signature outputs), BIP 0032 (HD wallets, hierarchical deterministic wallets), and BIP 0152 (compact block relay).

For example, BIP 0011 created a technical standard for most Bitcoin wallet service providers in the world. Today, most crypto wallets have embedded multi-signature technology to ensure security. This protocol has greatly affected the operation mode of the Bitcoin network and also brought the wallet security of service providers to a certain level.

BIP 0032 is a protocol with a single purpose, as it only affects wallets in the Bitcoin network. The protocol separates the generation process of public and private keys, bringing more security and stability. Some large Bitcoin wallet platforms, such as Armory and Coinkite, are using this technology.