Welcome to Crypto Jargon, the series where I break down the complex terms used in reference to cryptocurrencies and blockchain tech.
In this article of Crypto Jargon, we take a closer look at the terms:
Starting with BIP which stands for Bitcoin Improvement Proposal. A document outlining technical specifications on how to improve the Bitcoin protocol. Since Bitcoin is governed by a mutual consensus, the author of the document presents it to the Bitcoin community as a proposal. The person behind the BIP is also responsible for collecting and documenting both positive and negative input from the community and if there is a majority consensus on a BIP, the change gets approved and can be implemented in the protocol.
This is how the Segwit upgrade was implemented years after it was first proposed. It took quite some time for it to win over the majority of the miners who had to signal their agreement for it. Segwit, by the way, is explained in another article. You will find it linked below, so check it out.
BPI is something very different from BIP so do not confuse the two. It stands for the Bitcoin Price Index and represents the summed average of Bitcoin prices based on collected data from a wide range of exchanges across the globe. It applies aggregated statistics to reach a more balanced and realistic picture of the currency’s market value at present. It was created by the US-based exchange ‘Coinbase’ in 2013.
Next is EIP, which is pretty much the same as BIP but for the Ethereum Platform. It stands for Ethereum Improvement Proposal and it sets out the technical standards (protocol specifications, contract standards, client APIs and more) for the Ethereum blockchain. Speaking about Ethereum, let’s also take a look here the most popular Ethereum token standard ‘ERC20’. This is a technical standard for tokens built on the Ethereum blockchain platform via smart contracts.
ERC stands for Ethereum Request for Comment and 20 is the number that is assigned to that request. Most of the tokens built on the Ethereum blockchain are in fact ERC20 tokens but there are many other standards like ERC-777, ERC-1410, ERC-820, ERC-1644 and much more, all with different functionality and limitations to what use they serve.
As you probably know I also post these definitions on my YouTube channel, here’s my episode with today’s terms:
If you liked this article, you will most certainly love my eBook “Crypto Jargon A-Z” – this is the most up-to-date publication of its kind. With over 700 terms, acronyms and trading slang, it contains everything related to cryptocurrencies and blockchain tech – all the complex terminology we use in media articles, blogs, forum chats, social media posts and of course video content too so go check it out on Amazon at one of the following links:
🏆Exchanges I use for trading crypto:
Where I buy crypto:
►Changelly (good for instant coins swaps)(Global)
►Payeer (Europe, Asia, alternative to paypal)
►Coinbase (USA, EU, Africa) Get $10 worth of Bitcoin on your first $100 crypto purchase with this link: http://bit.do/coinbase_join
Where I store my crypto:
- Ledger Nano – the best hardware wallet (offline storage)
- Trezor – also one of the best wallets out there.
- Exodus – desktop wallet
- Coinomi – mobile phone wallet with instant coin swap feature
- Crypto.com – mobile wallet and exchange