A Bitcoin Improvement Proposal (BIP) is a formal document that outlines changes or enhancements to the Bitcoin protocol. BIPs provide a way for developers and community members to propose new features, modifications, or fixes that can improve the network’s functionality. Each BIP follows a specific format and includes details such as the motivation behind the proposal, its technical specifications, and how it impacts the current system.

This structured approach facilitates discussion and peer review within the community. BIPs can address various aspects of Bitcoin, such as scalability, security, and usability. Not all proposals are accepted or implemented; they undergo scrutiny and may require consensus from developers and miners before being adopted.

Notable BIPs have led to significant changes in Bitcoin, such as new transaction types or enhancements to privacy and security measures. Overall, BIPs play a crucial role in the evolution of Bitcoin by fostering collaboration and innovation among its users and developers.