TERM_DEF // UPGRADES_BIPS / BIP_388_WALLET_POLICIES
BIP 388
(WALLET POLICIES)
(WALLET POLICIES)
wallet-policies/">BIP 388 (Wallet Policies). A standard for human-readable wallet policies built on top of output-descriptors/">output descriptors.
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_388_WALLET_POLICIES_IS
BIP 388 (Wallet Policies) — at a glance
UPGRADES
BIP 388 — "Wallet Policies" is a proposal in the Descriptors family, first published in 2023 with status draft. A standard for human-readable wallet policies built on top of output descriptors. Its technical mechanism: wallet policy format wrapping descriptors with named parameters and registration. lets a hardware wallet "remember" multi-sig configurations safely
Why it exists
DESIGN
BIP 388 (Wallet Policies) exists to solve a specific problem: standardise wallet policies (multi-key, multi-script) on hardware wallets. 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-388 is the single source of truth for this concern, so any new client built today can match the behaviour of every client built since 2023.
HOW_IT_WORKS
Mechanism
HOW IT WORKS
Mechanically, BIP-388 wallet policy format wrapping descriptors with named parameters and registration. Adoption today: lets a hardware wallet "remember" multi-sig configurations safely.
1. Author drafts BIP-388 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-388) 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 After deployment + adoption, BIP-388 is promoted to "final"; deprecated proposals get "replaced" or "withdrawn".
WORKED_EXAMPLE
BIP-388 — quick reference card
EXAMPLE
BIP number : 388
Title : Wallet Policies
Area : Descriptors
First published: 2023
Status : draft
Fork class : no
Motivation : standardise wallet policies (multi-key, multi-script) on hardware wallets.
Mechanism : wallet policy format wrapping descriptors with named parameters and registration.
Where it shows up : lets a hardware wallet "remember" multi-sig configurations safely.
Read the spec : https://github.com/bitcoin/bips/blob/master/bip-0388.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-388 means the same thing across every wallet, miner, and node that has read this spec.
NON-CONSENSUS
BIP-388 is not a consensus rule — clients can implement it without coordinating with the network at large.
DRAFT
BIP-388 is still in draft — reference code may exist but mainnet adoption is partial or pending.
COMMON_PITFALLS
Things that catch people out
PITFALLS
- BIP-388 is still in DRAFT status — its details can change before activation, and any code built against it may need adjustment.
- 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 388 (Wallet Policies)
A standard for human-readable wallet policies built on top of output descriptors.
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.