Bitcoin’s BIP-119 upgrade may bring significant changes, boosting security and scalability through covenants and vaults. Though slow, consensus is growing.
If activated, it could enhance Bitcoin layer-2 solutions like Lightning Network. The last protocol update was Taproot in 2021.
An open letter from developers urges adoption, touting benefits for layer-1 and layer-2 scaling. Influential figures support it, predicting consensus by year-end.
Significant for self-custody, smart vaults could improve security. However, Bitcoin’s governance makes such upgrades complex and lengthy.
Understanding BIP-119’s potential is key as it may enable better custody methods and new forms of layer-2 bridges, making Bitcoin more interoperable.
Bitcoin continues its evolution as it faces governance and technological challenges, with BIP-119 potentially playing a pivotal role.
