BIP, BPI, EIP and ERC20 Explained | Crypto Jargon ep. 11


Welcome to Crypto Jargon, the series where I break down the complex terms used in reference to cryptocurrencies and blockchain tech. In this episode of Crypto Jargon, we take a closer look at the following terms BIP, BPI, EIP and ERC20 starting with BIP, 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 and if If there is a majority consensus on a BIP the change gets approved and it can be implemented in the protocol This is how 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 video. You will find it linked in the description box, so check it out. BPI is something very different to BIP do not confuse the two, it stands for Bitcoin Price Index and it 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 on the currencies market value at present It was created by the us-based exchange Coinbase in 2013 You know when you go to Coinmarketcap.com or even just on Google and you check the price of Bitcoin, against US dollar for instance, or bitcoin against Euro, there is one unified price This is the current market value of Bitcoin. Well, this is how it’s estimated. It’s a collected data from many different exchanges, and this is how we get that average amount which is what is considered to be the most adequate current price. Next on my list 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 such as protocol specifications, contract standards, client APIs and much more for the Ethereum blockchain Speaking about Ethereum, Let’s also take a look here at the most popular Ethereum token standard ‘ERC20’ This is a technical standard for tokens built on the theory on 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-1644 and much more, all with different functionality and limitations to what use they serve Enjoying this content? why not grab a copy of my book: Crypto Jargon A-to-Z the most thorough dictionary that exists to date with over 700 definitions of acronyms, trading slang and all the crypto terminology you need. Just go to ojjordan.com/cryptojargon and grab your digital copy today

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