Periodically, Bitcoin undergoes improvements created by the developers to make this network more
efficient, secure and scalable. The most recent was Taproot, which has not yet completed a week since its activation, but there are already other proposed improvements (BIPs) on the horizon.
John Newbery, developer of Bitcoin Core and founder of the NGO Brink, whose purpose is to help other developers raise funds to carry out their projects, spoke on this topic at LaBitConf, which is being held in El Salvador. His presentation was entitled What to Expect from the Upcoming Bitcoin Enhancement Proposals.
In his talk, Newbery detailed in a summarized and didactic way, without too many technical complexities, the four BIPs or Bitcoin enhancements that could arrive in the medium term. All of them, he remarked during the presentation, are aimed at encouraging the nodes and miners that keep the network running to continue doing their work. The following are the main features of each of them.
1. Signature aggregation
This first BIP or Bitcoin Improvement Proposal commented by the specialist would give the possibility to make several transactions using a single signature. “That’s good because it means less computational resources and less data on the network,” he said.
This change would incentivize different behaviors for users, and one of them is that it would make it cheaper to do a coinjoin than a standalone transaction by oneself. In this way, Newbery explained, “privacy-protective behavior is encouraged.
With BIP-118 it would be feasible that the most recent transaction on an off-chaintransaction chain, such as those on Bitcoin’s Lightning network, could lead to any transaction on that chain. Thus, “it is easier to create LN extensions with off-chain similar contracts. “With this, we could have more complex scripts“, said Newbery.
BIP Delegation in turn includes several enhancements, such as grafroot —proposed by Gregory Maxwell, who developed Taproot in 2018 -, g’root or generalized root, and entroot.
From Taproot, you can create a tree (the Merkel tree) with complex spending conditions, but you have to create it in advance when creating the output. By means of delegation, several additional spending conditions can be added to that tree.
In law, a covenant is a condition in a lease or other contract that prohibits certain conduct, such as, for example, not keeping animals in a rented house. That bond may also have a further clause that says that, if I sell that house, the clause must remain in force.
How does this principle apply to Bitcoin? In the expense conditions that apply to a transaction. Thus, conditions could be added to what the counterparty can do in that output, as explained in more detail in this CryptoNews article on bip-119.