BIP-119: BTC Upgrade that Changes How Crypto is Stored and Sent, Decided Later This Year?
Jakarta, Pintu News – The Bitcoin developer community is highlighting a Bitcoin Improvement Proposal (BIP) called OP_CHECKTEMPLATEVERIFY or BIP-119, which is claimed to bring major changes to the Bitcoin network . After a long time “settling” since being submitted in 2019 by Jeremy Rubin, this proposal now has the support of many parties and has the opportunity to find consensus by the end of 2025.
What is BIP-119 and Why is it Important for Crypto?
BIP-119 is a proposal to add a new feature to the Bitcoin protocol called “covenants”. This feature allows users to limit where and how their Bitcoin can be moved. One of the most popular implementations is the “vault”, which is a cold wallet that can be programmed to only transfer a certain amount of Bitcoin to a hot wallet within a certain period of time, such as a maximum of 0.1 BTC per week.
Proponents believe that this upgrade will increase the security and flexibility of self-custody and allow for more secure and efficient layer-2 Bitcoin applications such as Lightning Network and Ark. In addition, BIP-119 is also considered to open up opportunities for Bitcoin integration with other blockchain smart contract ecosystems such as Ethereum , Polygon, or Avalanche.
Bitcoin Upgrade Process: Why Is It So Complicated?
The upgrade process on the Bitcoin network is very slow and cautious due to its decentralized nature. There is no board of directors to make decisions; any changes must go through a global community consensus. Previous experiences, such as the activation of Taproot in 2021, prove that significant changes can take years to fully implement.
There are two main mechanisms under consideration: miner approval and User Activated Soft Fork (UASF), which requires approval from thousands of nodes around the world. Each mechanism has its pros and cons, especially regarding centralization and security.
Key Benefits of BIP-119 for Bitcoin Users
If approved, BIP-119 will bring many tangible benefits to crypto users. First, the covenants enable smart vault features that can automatically restrict the flow of Bitcoin. This increases security, as assets cannot be immediately stolen even if hot wallets are accessed by irresponsible parties.
Second, this proposal makes it easier to create new layer-2 applications and scaling solutions, including faster and cheaper transactions via the Lightning Network or Ark protocol. This makes Bitcoin more ready to be used for everyday transactions, not just as a long-term storage asset.
Will BIP-119 be Approved This Year?
The signal of support for BIP-119 grew stronger after 66 Bitcoin developers and companies signed an open letter encouraging the accelerated adoption of this proposal. Big names such as Jameson Lopp, Andrew Poelstra, and companies Anchorage and Luxor Mining are also supporting.
Even so, the activation of BIP-119 remains uncertain. It needs solid technical and social consensus before implementation. The target of the end of 2025 is said to be realistic for achieving consensus on technical direction, but full implementation could take another 1-2 years.
Conclusion
BIP-119 has the potential to open a new chapter in the Bitcoin ecosystem, by introducing simple smart contracts, vaults, and bridges to other blockchains. If agreed upon, this could be the most revolutionary upgrade since Taproot. However, as always in the crypto world, the journey to big changes requires patience, collaboration, and community-wide consensus.
Also Read: Big Drama: Coinbase and Binance Deny Each Other Over Media Leaks and Market Grab!
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Reference
- Cointelegraph. Bitcoin upgrade BIP-119 to be decided by end of year. Accessed July 15, 2025.
