Beyond price movements, another Bitcoin-related issue is drawing attention. Developers have prepared proposals ranging from restricting the use of old addresses to introducing vaults that can intervene in suspicious withdrawals.
One proposal even suggests using the smallest unit, currently called “satoshi,” directly as “bitcoin.”
Known as Bitcoin Improvement Proposals, or BIPs, these documents set out the technical details of proposed ideas. But receiving a BIP number does not automatically mean a proposal will be added to Bitcoin. Some documents remain in draft form, others have finalized technical text, and some have been superseded by other proposals.
Here are six notable ideas that could change the everyday experience of Bitcoin users and how they store their assets.
Could Restrictions Be Placed on Old Bitcoin Addresses?
One of the most striking proposals is BIP 361, co-authored by Jameson Lopp. The draft sets out a phased transition plan in case sufficiently powerful quantum computers could break the signature methods Bitcoin currently uses.
The proposal’s first phase aims to block new $BTC transfers to address types vulnerable to quantum attacks about three years after activation. Two years after that, it envisages imposing additional conditions on spending using existing ECDSA and Schnorr signatures.
The aim is to prevent attackers from taking $BTC held in old addresses. Quantum-resistant recovery methods are being considered so that rightful owners can access their funds.
However, this approach also raises the question of what would happen to assets that are not transitioned or have been inactive for a long time. BIP 361 remains in draft form and also requires the development of a post-quantum signature standard. The timelines set out in the document would begin if the proposal is activated.
In the same area, BIP 360 proposes a new output type called “Pay-to-Merkle-Root.” By removing the direct key-based spending path in taproot, it aims to reduce quantum risk from public keys remaining visible for extended periods. However, this draft does not provide a standalone solution to quantum attacks that might occur while a transaction is awaiting confirmation.
It May Be Possible to Recover Bitcoins Even If a Hacker Gets Into the Wallet
Among the most interesting ideas for Bitcoin users are “vault” systems, which add waiting periods to withdrawals.
One example of this approach was BIP 345, which set a predetermined waiting period before $BTC could be sent to any address. During that time, if a user spotted a suspicious withdrawal, they could move the assets to a predefined recovery path.
The document gives a one-day waiting period as an example. In such a system, an attacker who obtained the daily key could not immediately transfer the $BTC to their own address, giving the user a chance to intervene using a separate recovery key.
BIP 345 is now marked “closed,” while BIP 443 is listed as the suggested alternative.
BIP 443, developed by Salvatore Ingala, provides a more general framework for setting the conditions under which $BTC can be spent in later transactions. The proposal could be used in vault systems, shared fund management, and various scaling designs, and remains in draft form.
Sharing a Single Address Without Revealing All Payments
BIP 352 defines a payment method called “Silent Payments”.
Repeatedly using the same Bitcoin address makes it easier to see the payments sent to it together. Silent Payments, by contrast, lets a user share just one piece of payment information while a different destination address is created on the blockchain for each payment.
For example, someone who posts a donation address on a website could receive payments without providing a separate address to each sender. Someone viewing the blockchain would also be unable to directly link those payments simply by using the shared payment information.
In return, the recipient’s wallet must scan the blockchain to find incoming payments. This requirement presents a technical challenge, particularly for lightweight wallets.
The technical text for BIP 352 is “completed”. Unlike some other proposals, Silent Payments does not change Bitcoin’s consensus rules; its use depends on wallet support.
“Bitcoin” Proposed in Place of “Satoshi”
BIP 177, developed by John Carvalho, is less focused on technical changes than on how users see their balances.
The proposal suggests calling the smallest unit of measurement, currently known as a satoshi, “one bitcoin.” The aim is to show whole numbers in wallets instead of long decimal figures.
For example, an amount written today as 0.00010000 $BTC could be shown as “10,000 bitcoin” under the proposed naming convention.
This change would not affect Bitcoin production, the value users hold, or supply rules. Moreover, under the document’s definition, the $BTC code would keep its current meaning: 1 $BTC would still represent 100 million base units.
The draft could bring a significant change to common usage because it proposes a system in which the word “bitcoin” and the $BTC code can refer to different denominations. For now, it is a naming convention proposed for adoption by wallets and applications.
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BIP 347 proposes bringing back the OP_CAT instruction, which was included in Bitcoin’s early days but deactivated in 2010.
OP_CAT’s basic function is to combine two pieces of data. This seemingly simple operation could give developers a way to implement more complex spending conditions and verification mechanisms on Bitcoin.
The proposal lists use cases including safe deposit boxes, advanced contracts, payment channels, and simplifying certain processes in the BitVM2 design.
The new design caps the size of the combined data at 520 bytes, placing a specific technical limit on use of the command.
Although BIP 347 is marked “completed,” this means its technical document is finalized. Enabling the command in Bitcoin would, however, require a separate soft fork.
This Could Pave the Way for Using Different Networks with $BTC
BIP 300, developed by Paul Sztorc and CryptAxe, addresses transfers between Bitcoin and sidechains that use a different security model.
The “Drivechain” approach aims to let users move their $BTC to sidechains with different features and then return it to the main Bitcoin network.
A notable feature of the proposal is that conversions from sidechains to Bitcoin would be managed through a miner-based proof-of-work mechanism, rather than by a fixed company or group of signatories.
This structure would allow different transaction and application designs to be tested outside the main network. For users, however, a key consideration is the role miners would play in withdrawing the $BTC sent to the sidechain, along with the security assumptions involved.
BIP 300 is still at the draft stage. The model described is therefore not a feature that will be implemented for all Bitcoin users, but one proposal for areas where Bitcoin could be expanded.
*This is not investment advice.
Source: en.bitcoinsistemi.com. Adapted by NBTC.
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