Library · Crypto, word by word · Inside Bitcoin
What is a BIP?
A BIP, or Bitcoin Improvement Proposal, is a public design document that proposes or describes a change to Bitcoin, its software or its processes. Each one has a number, such as BIP-32 for wallet key trees or BIP-141 for SegWit.
What it means for you
Wallet features are often labelled by BIP number (BIP-32 key trees, BIP-174 partially signed transactions), so the numbers tell you what a wallet can do and which wallets can work together. A numbered BIP is not an adopted rule: under the current process its status can be Draft, Complete, Deployed or Closed.
How it works
BIP-1 set out the original process and three types: Standards Track, for changes affecting most implementations such as network or transaction-validity rules; Informational, for design issues and guidelines; and Process, for changes to procedures. BIP-1 was replaced by BIP-2, and BIP-2 by BIP-3, which cuts the statuses to four: Draft, Complete, Deployed and Closed. A BIP only documents a proposal; a consensus change takes effect when node software implements it and the network activates it, for example through miner signalling or a preset block height.
Sources: BIP-1: BIP Purpose and Guidelines, BIP-3: Updated BIP Process, Bitcoin Developer Guide: Block Chain (consensus rule changes) · checked 4 October 2026
Related words
Educational content, not financial advice. Written by hand and checked against the source named above. Something wrong? Tell us and we reply within two business days.