How is Bitcoin’s code modified?

Since the Bitcoin blockchain is a decentralized network with no central authority, anyone on the network can alter its code. However, the complex process of doing so makes it hard for haphazard modifications to take effect. So, how is Bitcoin’s code modified?

Examples of possible code modifications include changing the blockchain’s consensus mechanism from a proof of work (PoW) to a proof of stake (PoS) mechanism, increasing the network’s native tokens’ hard capitalization from 21 million to something like 100 million, or even improving on the privacy of transactions on the network.

While all this is possible, it doesn’t mean it’s achievable because the process of incorporating them into the code involves Bitcoin developers, miners, and the blockchain’s day-to-day users. And sometimes it may be hard to get all these groups to agree, especially when diehard Bitcoin supporters will support a change only when it’s absolutely necessary.

Below, we explore how the BTC-powered protocol’s features can be upgraded. 

How is Bitcoin’s code modified?

To bring all the decentralized stakeholders to the table, changes to the network are suggested through a document called a Bitcoin Improvement Proposal or BIP.

What is a Bitcoin Improvement Proposal and what does it contain?

A BIP is a formal document showing the intention to modify Bitcoin’s code. The document is usually put together after an individual on the network sees a need to alter the code and presents the idea to other Bitcoiners in forums and social media platforms like crypto Twitter. If the idea receives sizable traction through these avenues, they make their intentions formally known through a Bitcoin improvement proposal.

The contents of the BIP must clearly show why the proposed modifications are needed and the technical specifications needed to implement it. The proposals are then sent to an editor who confirms that it follows the stipulated BIP style before being presented to the Bitcoin community as a draft BIP.

As a draft, the proposal can take many forms such as deferred, proposed, rejected, withdrawn, obsolete, or active with the progress publicly available. When a proposal receives positive feedback, it enters the testing phase on its way to the approval stage. Note that the time between a draft proposal and an approved BIP may take years. 

The lengthy process is meant to ensure the code is thoroughly reviewed before being implemented. In most cases, 95% of miners who have participated in confirming transactions in the last two weeks must indicate their nod for the BIP to be marked as approved. Where a 95% acceptance rate isn’t required, there must be a strong reason for the deviation.

Types of Bitcoin Improvement Proposals

• Standard BIPs – These types of BIPs show an intention to modify Bitcoin’s code related to the standards employed on the blockchain. They can touch on things like interoperability between BTC wallets or the network’s security.
• Informational BIPs – As the name suggests they are meant to inform the Bitcoin community but not suggest changes to the code. For example, an informational BIP can include new guidelines to be followed by the community when engaging in a particular task. Note that informational BIPs don’t require consensus within the community since they don’t propose a change to the Bitcoin code.
• Consensus/process BIPs – These touch on how miners/nodes and the platform’s development community reach a consensus in a particular scenario.

How is Bitcoin’s code modified? : Examples of significant Bitcoin code modifications so far

Segregated witness (SegWit)

In 2017 Bitcoin’s code was modified to allow a Bitcoin block to hold more transactions. The code change implemented a feature that segregates or divides a transaction into two parts; wallet addresses involved and signatures also called witness data. Note that the SegWit upgrade was formally suggested in 2015 and implemented in 2017.

Schnorr signatures

This code change made use of the SegWit upgrade to allow for multiple signatures involved in a single transaction to be compressed into a single signature. The Schnorr signatures upgrade touched on the consensus of the network hence it falls under consensus BIPs.

Taproot 

The Bitcoin code modification called Taproot which went live in 2021 increased the network’s privacy, efficiency, and paved the way for smart contracts on the Bitcoin blockchain.

Conclusion

In our discussion to answer the question “how is Bitcoin’s code modified?” it’s evident that although anyone can suggest a modification to the code, its implementation requires a greenlight majorly from developers and miners. It’s also clear that the lengthy process followed to modify the code allows enough time to review the code thus preventing the changes from accidentally resulting in a hard fork or splitting the Bitcoin blockchain into two independent chains.