TERM_DEF // UPGRADES_BIPS / BIP_16_P2SH_EVALUATION_RULES
BIP 16 (P2SH
EVALUATION RULES)
EVALUATION RULES)
p2sh-evaluation-rules/">BIP 16 (P2SH Evaluation Rules). The 2012 fork/">soft fork defining P2SH semantics.
This page sits in the Upgrades & BIPs section — The proposal process and the major upgrades that shaped Bitcoin. Read on for what it is, why it exists, how it works under the hood, and what to watch out for.
This page sits in the Upgrades & BIPs section — The proposal process and the major upgrades that shaped Bitcoin. Read on for what it is, why it exists, how it works under the hood, and what to watch out for.
WHAT_BIP_16_P2SH_EVALUATION_RULES_IS
BIP 16 (P2SH Evaluation Rules) — at a glance
UPGRADES
BIP 16 — "P2SH Evaluation Rules" is a proposal in the Script family, first published in 2012 with status final (soft fork). The 2012 soft fork defining P2SH semantics. Its technical mechanism: hash160/">OP_HASH160 <20-byte hash> OP_EQUAL output, with redeemScript supplied in scriptSig. every "3..." address is a P2SH address
Why it exists
DESIGN
BIP 16 (P2SH Evaluation Rules) exists to solve a specific problem: let recipients hide complex scripts behind a short hash and shift validation cost to the spender. Without a written, numbered spec, every wallet and node implementer would interpret the requirement differently — and Bitcoin's value depends on every implementation agreeing exactly. BIP-16 is the single source of truth for this concern, so any new client built today can match the behaviour of every client built since 2012.
HOW_IT_WORKS
Mechanism
HOW IT WORKS
Mechanically, BIP-16 oP_HASH160 <20-byte hash> OP_EQUAL output, with redeemScript supplied in scriptSig. Because this is a soft fork, old software accepts new behaviour without modification — but new behaviour is rejected if old software produces it. Adoption today: every "3..." address is a P2SH address.
1. Author drafts BIP-16 against the BIP-2 template — abstract, motivation, specification, rationale.
2. The text + a reference implementation are posted on the bitcoin-dev list and as a PR to bitcoin/bips.
3. Reviewers tear it apart: ambiguities, security concerns, edge cases, interaction with prior BIPs.
4. Once stable, the BIP editor merges it; it gets a number (BIP-16) and the status "draft" or "proposed".
5. Implementations land in Bitcoin Core / wallets / other clients. For consensus changes: activation parameters chosen.
6. After deployment + adoption, BIP-16 is promoted to "final"; deprecated proposals get "replaced" or "withdrawn".
WORKED_EXAMPLE
BIP-16 — quick reference card
EXAMPLE
BIP number : 16
Title : P2SH Evaluation Rules
Area : Script
First published: 2012
Status : final
Fork class : soft
Motivation : let recipients hide complex scripts behind a short hash and shift validation cost to the spender.
Mechanism : OP_HASH160 <20-byte hash> OP_EQUAL output, with redeemScript supplied in scriptSig.
Where it shows up : every "3..." address is a P2SH address.
Read the spec : https://github.com/bitcoin/bips/blob/master/bip-0016.mediawiki
KEY_PROPERTIES
OPT-IN
No authority can force a BIP on anyone. Adoption depends entirely on whether the change is genuinely useful.
NUMBERED
Stable numeric reference — BIP-16 means the same thing across every wallet, miner, and node that has read this spec.
BIP-16 is a soft fork — it changes (or proposes to change) the rules every full node enforces.
DEPLOYED
Implementations of BIP-16 are in production. The behaviour is observable on mainnet today.
COMMON_PITFALLS
Things that catch people out
PITFALLS
- BIP-16 is a soft fork — old clients accept new behaviour but don't enforce it. Validate against an upgraded node to be sure the rule is being checked.
- Don't confuse "draft" / "proposed" / "final" status — read the BIP header before relying on it in production.
- The BIP number is just an editorial counter — it doesn't imply correctness or stability. Always cross-reference with the latest bitcoin/bips repo.
RELATED_CONCEPTS
Other terms from Upgrades & BIPs — click any to read its page:
TERMINOLOGY_INDEX
TERMINOLOGY
BIP 16 (P2SH Evaluation Rules)
The 2012 soft fork defining P2SH semantics.
Segregated Witness (SegWit, BIP 141)
The 2017 upgrade separating witness-data/">witness data, fixing tx malleability, and introducing weight units.
Taproot (BIP 341)
The 2021 upgrade introducing key-aggregable schnorr-signatures/">Schnorr signatures and Merkleized script trees.
Tapscript (BIP 342)
Script-language updates accompanying Taproot — new opcodes, removed limits.
Schnorr (BIP 340)
The Schnorr signature spec adopted by Taproot.
BIP Process
The community workflow for proposing, discussing, and tracking changes to Bitcoin.
Soft Fork Activation
MASF (Miner-Activated Soft Fork)
Activation triggered by miner signaling in block versions.