BIP 119, can enter into a contract on where and how Bitcoin transferred to a wallet can be spent. A condition for spending, according to fans, could cause Bitcoin to lose one of its unique offerings, its exchangeability and even its exchange value.
BIP 199 Could Kill Bitcoin’s Functionality
Bitcoin Improvement Proposal (BIP) 119, bitcoinIt wants to settle contracts or spending terms on . This means that a certain amount of Bitcoin sent to a user’s wallet address can only be spent if the spending conditions are met.
A specific transaction code in BIP 119 imposes restrictions on a transaction. If Bitcoin is sent from address A to address B, “B” can only send BTC to a place on the white address list after receiving it. This is an improvement that will affect Bitcoin’s exchangeability as it creates two different classes of UTXO.
Since each BTC has similar functionality and quality, Bitcoin is considered an exchangeable asset. The introduction of a contract that changes the properties of some Bitcoins in terms of where they can be spent and transferred. BTC It will pave the way for the creation of two different asset classes.
Interestingly, this contractual restriction could harm privacy and equal access for users, allowing financial regulators and governments to limit and further track Bitcoin transactions to whitelists or verified addresses.
The rollout of BIP 119 can protect user funds from hacking or theft while having a positive impact on asset modifiability and user privacy.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, KoinFinans and the author of this content cannot be held responsible for personal investment decisions.