BIP174: Development, which will make offline transactions Bitcoin possible

BIP174: Development, which will make offline transactions Bitcoin possible

Now, almost all Bitcoin transactions require users to be online to enter your public and private keys to sign a transaction and transmit it to the network. Only after that it reaches the recipient. Exception is the collection of keys, coins, paper and other media. But these methods are not very comfortable.

Proposal for improving Bitcoin (BIP 174) added to the official repository. Potentially it will allow the blockchain to support the famous “Partially signed bitcoin transactions” (PSBT) in the future.

In the case of implementation of the proposal, the users of Bitcoin will be able to perform an offline transaction using a Protocol that will allow them to establish standard formats for transaction signing without uploading it to the network.

The project is still under development, but a large number of programmers have tested and worked actively on this modification to successfully and accurately integrate the function to the Bitcoin Protocol.

The proposal was added a few days ago, Andrew Chow, active developer community, and since then has gained a lot of support cryptocurrency users. One of the developers that joined this initiative became Peter wil actively involved in the development of Segregated Witness and is the co-founder of Blockstream.

The implementation of such solutions would allow the blockchain of Bitcoin to improve some essential aspects of the architecture. Although initiatives such as Segregated Witness, is crucial for scalability, such as Lightning Network and Bip 174, promise significant gains in mass use.

Already have developers who are ready to successfully apply Bip 174. One of them is Peter gray, the founder of Coinkite, a company that has developed a portfolio called Coldcard that support transactions, based on the standard PSBT:

“A new wallet Coldcard based on PSBT (or BIP 174), we believe it is “native PSBT”. It adds a signature to the files PSBT on MicroSD card and/or via USB. It already works well with the existing query to retrieve BIP174″.

The proposal has yet to be voted on, and at the moment there is no information about when it will be fully operational. However, its future looks quite promising and most likely to develop BIP174 will be implemented.


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