What Is Bitcoin BIP-119 and Why Is It So Controversial?


Jeremy Rubin, a Bitcoin Core developer, is pushing for a quick test of his BIP-119 Miner Activated Soft Fork. Rubin’s BIP-119 seeks to make use of a new operating code.

The new operating code allows for the implementation of agreements, which have several useful applications and can help scale Bitcoin.

However, there are some in the Bitcoin community who criticize the proposal and worry that the BIP-119 will hinder the fungibility of Bitcoin, one of the key features of Bitcoin, while other concerns are related to the speed at which it is being pushed. .


What is Bitcoin BIP-119?

Bitcoin Improvement Proposal 119 is an improvement proposal for Bitcoin, advocated by Jeremy Rubin, which seeks to implement the OP_CHECKTEMPLATEVERIFY operation code. This new operating code allows the integration of agreements.

What are agreements?

Agreements are restrictions on how bitcoin can be spent beyond key ownership. In bitcoin transactions, the agreements mainly refer to restrictions on where currencies can be transferred after acquisition.

For example, wallet A makes a pact with the bitcoins you own, adding a whitelist of related addresses. Wallet A sends bitcoins to wallet B. Wallet B can only send those bitcoins to other whitelist wallets.

Why BIP-119?

The OP_CHECKTEMPLATEVERIFY (CTV) proposal of the BIP-119 allows the implementation of agreements. Agreements are useful for building smart contracts with a variety of useful use cases, such as preventing your funds from being stolen in the event of hacking and helping to scale the web.

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With the use of CTV, you can create a wallet vault. These can be a useful tool to increase the security of refrigerated storage solutions; they are provided with default transaction routes that move their funds from their cold storage to a hot wallet. This way, if your wallet is hacked, stolen or lost, they will not be able to steal your funds.

CTV can also help scale Bitcoin by implementing Congestion Controlled Transactions. When network demand is high, making transactions becomes very expensive. Using CTV, large payment processors can include all of your payments in a single transaction commitment for confirmation purposes.

Why is BIP-119 so controversial?

The controversy surrounding BIP-119 revolves primarily around two key concerns among the Bitcoin community.

The first is the negative effect that the introduction of conventions could have on the fungibility of Bitcoin, one of the main features of crypto. The fungibility of Bitcoin is based on the fact that every bitcoin is identical in function and quality.

The introduction of agreements that change the properties of specific bitcoin units would effectively create different types of bitcoins in terms of how they can be spent or where they can be sent. Limiting how you can spend your bitcoins also limits the usefulness of Bitcoin, ultimately hurting its exchange value.

Second, some within the community feel that they are in a hurry to implement a proposal that could have a serious impact on the interchangeability of bitcoin.

In the past, quick tests have been used to trigger updates; The Bitcoin Taproot update has been activated via a. This time, however, some believe that, given the serious impact this update could have on Bitcoin, the proposal should be reviewed and alternatives examined.

Bitcoin interchangeability is at stake

While Rubin’s BIP-119 proposal promises to address some of Bitcoin’s current security and scaling issues, the agreements could also place detrimental limits on the usefulness of the cryptocurrency. Unintentionally or not, this would definitely hurt the exchange value of Bitcoin in the long run.

The proposed changes to BIP-119 could have such major consequences for the interchangeability of Bitcoin that even those who do not oppose its implementation are cautious.


At least to the point of wanting to study more carefully the effects that such an update could have on cryptocurrency.


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