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Block Version Number in Bitcoin


The block version number in Bitcoin serves as an indicator of which set of consensus rules a block follows. It's also used to signal miners' readiness or support for upcoming protocol upgrades. Over time, block version numbers have evolved from simple sequential numbers (like versions 1 through 4) to a more complex bit-field system, which allows for multiple upgrades to be signaled at once.


From last time you badgered me I made some notes.


Evolution of Block Versions


Early Versions (1-4):


These were straightforward indicators of protocol changes. For example:


Version 1 was used from the Genesis block until March 2013.


Version 2 came with BIP 34, authored by Gavin Andresen, it added the block height to the coinbase transaction and was activated at Block 227,931 on March 27, 2013.


Version 3 enforced stricter signature validation with BIP 66, authored by Pieter Wuille, it ensured correct DER encoding of signatures. It activated at Block 363,725 on July 4, 2015.


Version 4 enabled CheckLockTimeVerify (CLTV) with BIP 65, also authored by Pieter Wuille, it allowed for time-locked transactions and activated at Block 388,381 on December 11, 2015.


Then come the Version Bits format:


Bitcoin upgrades were becoming increasingly complex, the block version system transitioned to the Version Bits signaling mechanism, which allows multiple protocol changes to be signaled at once using specific bits in the block version field, allowing miners to signal support for up to 29 features simultaneously, each represented by a specific bit in the 32-bit version field.





When Segregated Witness (SegWit) was introduced, Bitcoin transitioned from simple block versions to the complex numbers seen today.


Special Note: before we review the important key version bits, I have to make something clear. These version numbers are more than just sequential; they signal specific changes using bits


I am going to call out version numbers like 536 870 912, which is is the decimal representation of the hexadecimal value 0x20000000


The full number 536870912 in binary is 00100000000000000000000000000000.


“536" doesn't have standalone significance. It’s just a part of the decimal value when the binary representation of 0x20000000 is converted into base 10 (which equals 536870912).


The important part lies in the bitwise representation, where the leading bits "001" in the binary form, are reserved for signaling purposes, indicating that version bits are being used.


But for the purpose of conveying version numbers to a human (this human being you Max) we will use the decimal representation instead of 0x2 nd a bunch of zeros or 001 and 29 more zeros.


Now to the bit version section…


Version 536 870 912 indicated readiness for SegWit, introduced through BIP 141 (authored by Pieter Wuille). SegWit was activated on August 24, 2017, at Block 481,824.


Version 536 870 913 was used to signal support for BIP 91 and authored by James Hilliard. BIP 91 lowered the threshold required for SegWit’s activation. It was locked in at Block 477,120 on July 20, 2017.


Version 536 870 914 and 536 870 916 continued signaling for SegWit deployment through various BIPs.


How It Works Today


Today, miners use the Version Bits system to signal support for new upgrades, and they must keep their block version numbers in line with consensus rules. Version numbers like 536870912 (SegWit) are still recognized by the network, and each bit in the version number, a miner can signal support for different soft forks simultaneously.





For instance, if the network is ready for a future upgrade, miners will flip the corresponding bit in their block version number, signaling their support for the upgrade. The rest of the version field remains intact, allowing multiple soft forks to be signaled at the same time.


First 3 bits = 001: Reserved and indicate version bits are being used.


Remaining 29 bits: Available for signaling specific soft forks or protocol changes. Each of these bits corresponds to a different potential feature being activated.


Car Analogy for Bitcoin Block Version Numbers


Let’s compare Bitcoin’s block version numbers to Fords and how their cars evolved from simple model numbers to VIN numbers that represent various features and changes in their design over the years.


The Model T and Block Version 1:


Just like Ford's Model T, the first Bitcoin blocks (version 1) were basic, so basic, buyers didn’t even have a choice in what color vehicle they could buy “you can have a car in any color so long as its black. Similar to early block versions that had no special features—the first blocks had no complex rules or signals, just the essentials.


Evolving Model Years and Version Numbers:


As Ford expanded its lineup, more models came out, and so did the need for differentiating cars beyond going from model T to Model A.


Apply that to Bitcoin, version 1 to 4 were indicators of upgrades like block height (BIP-34), stricter validation (BIP-66), and time-locked transactions (BIP-65) can be compared to model T to model A


Complex Version Bits = New Ford VIN Structure:


Eventually, car manufacturers standardized more details in its VIN numbers to reflect all the specifics of each model the world manufacturers identifier, vehicle description section, and the vehicle identifier section—just like Bitcoin's version bits system, which allows for more granular signaling.


The VIN was introduced in 1965 to track each vehicle's specifications.



 



The first two characters of the VIN, such as “1F,” identify Ford and where the vehicle was built. 1F is a Ford built in the USA.


For example, characters 4-8 in a Ford VIN indicate engine type, body style, and model, much like Bitcoin’s complex version numbers (536 870 912 or 0x20000000) that signal specific features like SegWit (BIP-141) or BIP-91 activation.


Or version 536 870 916 (0x20000004) signals both SegWit and BIP-91—much like how characters in the Ford VIN specify the engine, body, and trim level of a car.


VINs were more standardized in the 80’s. Ford’s VIN numbers now include production year, plant location, and a unique serial number to distinguish every car (that’s characters 10-17). Likewise, Bitcoin’s version bits (introduced with version 536870912) can signal multiple protocol changes at once. Just as the tenth digit in a VIN tells you the model year (e.g., “J” for 1988), a Bitcoin version number can tell you which upgrades are active. Bits 1-3: Reserved for version signaling format (for example, the top three bits set to 001 for soft fork signaling).


Bits 4-32 can each represent a specific feature or soft fork proposal, meaning multiple upgrades can be signaled simultaneously within the same block version field.


Conclusion


In both cases, as the products (Fords and Bitcoin blocks) became more complex, the identifiers also became more detailed. From simple model numbers like T and A (Max likes T & A) to VIN numbers, Bitcoin’s version bits both allow for greater customization and finer control.


Like how car manufacturers track and signal changes to its cars over time with VINs, Bitcoin uses block version numbers to ensure the network continues to evolve. Bitcoin is still Bitcoin, and a Ford is still a Ford regardless of the fact Henry Ford is dead, and Satoshi is not Craig Wright, or Adam Back, or Peter Todd. 

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(00:00) Welcome To Bitesize Bitcoin!

(00:35) Who The Fuck Is That?

(02:04) What Do You Want Max?

(03:52) Block Version Number

(04:57) The Versions

(08:09) Version Bits Upgrades

(11:25) It's Like A VIN!

(15:00) What's a Wolf Doing on Wall Street?

(16:35) In Conclusion...

(16:59) Night Mate

(17:33) SPONSORED BY ALTAIR

[00:00:00] Unknown:

Begin with, what is Bitcoin? 1 bit 47.  

[00:00:03] Unknown:

A lot of people are familiar with Lightning, and Liquid is effectively,   layer 2. Bit 129.   What is Taproot? Sure and Taproot, that's the first new protocol upgrade since SegWit.  

[00:00:15] Unknown:

Difficulty adjustment. How do mnemonic seed words work?   UTXO   Management.  

[00:00:53] Unknown:

Hello.   Hey, mate. How's it going? Who the fuck is that? It's Max again. Oh, is that Sarah?   Send her, my love. Yeah.  

[00:01:02] Unknown:

It's Max. He sends his love. Tell Max I said to fuck off. Stop calling here all night.   Yeah. What what what was she saying?   She says hi. Oh, that's really sweet. I love her too. Send her a big cuddle from me. Max, it's 3 o'clock in the morning. What do you want? Yeah. I said I was gonna call you in and out, didn't I? But   funny story, actually. I, was going off to the gym, and normally when I go on my way to the gym, I normally stop into this lovely little coffee shop actually on the corner. Mhmm. Probably the best croissants I've Yeah. They do, like,   almond croissant. I'm not really actually a fan of almond croissants, but I normally go for the chocolate ones. Okay. My missus normally likes the almond ones. But, anyway, they were out, so I thought, you know what? I'm gonna go a different way. Always a So I was cycling this other way, and they closed the path that I would normally go along the river. So I thought, right, for fuck's sake Go to here. Just get off my bike, carry it up the stairs, and then I bumped into an old friend.  

Anyway  

[00:02:00] Unknown:

Max. He's  

[00:02:02] Unknown:

yeah? What do you want? Listen. We said we're gonna get through this block version number stuff. So if you've got a minute, should we go through that now? Let me go downstairs.  

[00:03:12] Unknown:

Alright, Max.   I am now sat down in my office at my desk  

[00:03:17] Unknown:

with a cup of coffee that I have poured,  

[00:03:19] Unknown:

ready to answer whatever ridiculous question you have for me. Oh, come on, mate. Not ridiculous.  

[00:03:25] Unknown:

It's important stuff here. You're right. I wanted to know about   the block version number, please. You said you were gonna go into this with me. Yes. In our block template creation discussion,  

[00:03:37] Unknown:

I knew you'd want to expand on some of these topics that we were discussing while I was trying to wrangle up chickens in the middle of the night. I'm not gonna have a go, mate, but it was a bit rude. I did feel like you dismissed me a little bit. Yeah. But I love you, and I let it go. I love you too, and I don't apologize.  

[00:03:53] Unknown:

What What do you wanna go over first? Block version number. What is it? How does it work?  

[00:03:58] Unknown:

Why should we care kind of thing? Okay. I happen to have those prepared right in front of me because I knew this was going to happen.   Oh, look at you.   Always prepared.   The good boy scout that I am. This is a new John. Mhmm. Being prepared. Yeah. And in my preparations, I wrote down that a block version number is the number in Bitcoin   that serves as an indicator of which set of consensus rules a block follows.   It's also used to signal miners' readiness or support for upcoming protocol upgrades.   Over time, the block version numbers have evolved much like UMAX,   from simple sequential numbers like versions 1 through 4 to more complex bit field system, which allows for multiple upgrades to be signaled at once.  



[00:04:44] Unknown:

Okay. So they're kind of it's a way to   to your signaling and because the signaling is getting more complex,   so has the version numbers.  

[00:04:54] Unknown:

Very good. You got all that just from my introduction. Yes. Well, let's talk about how this evolved. Like I said before, there were early versions and they were just labeled 1 through 4. For example, version 1 was used from the genesis block all the way up until March 2013.   Then version 2 came with BIP 34 authored by Gavin Andresen, and it added the block height to the coinbase transaction and was activated at block   227-931   on March 27,   2013.   Version 3 enforced stricter signature validation with BIP 66   authored by Peter Wille. It ensured correct DER encoding of signatures, and it was activated at block 363-725   on July 4, 2015.  

Do you like how well I pronounced Peter Wille? Peter Wille. Yeah. Very good. Yeah. Have you been practicing that? I certainly have. Yeah. I wanted to impress everybody because I knew you would be asking me these questions, and I would eventually have to pronounce Peter Wheeler's name. You've been saying it in your sleep. I have. It's been a worry for Sarah. She's gone, who is this Peter Wheeler? And what is he to my John? I don't get to sleep a lot lately because somebody keeps calling me in the middle of the night asking me these ridiculous questions. Come on, mate. We got things to do. Stop crying. Alright. Very well. Moving on to version 4. It enabled check lock time verify   with BIP   65, also authored by Peter Villa.  

It allowed for time locked transactions and activated at block 388-381   on December 11, 2015.   Great block. Agree. Then we change things up a little bit to the version bits format.   Because Bitcoin upgrades were becoming increasingly complex, the block version system transitioned to the version bits signaling mechanism, which allowed multiple protocol changes to be signaled at once using specific bits in the block version field. Oh,   okay. This allowed miners to signal support for up to 29 features simultaneously,   each represented by a specific bit in the 32 bit version field.  

This happened when Segwit was introduced. Bitcoin transitioned from the simple block versions 1 through 4 to this more complex   numbers seen today. Max, before we review the rest of these numbers, I need to give you a special note of understanding.   Are you ready for my instructions? I guess so. Yeah. Here's what I need you to know.   These version numbers that I'm going to call out are not just sequential numbers. They signal specific changes using bits. I'm gonna call out version numbers like 536-870-912.   That is the decimal representation   of the hexadecimal value   0, x2, and then a bunch of zeros.  

The full number, 5368-70912,   in binary   is 1   and then 29 zeros behind that. The 536   doesn't have any standalone significance. It's just part of the decimal value where the binary representation   of 0x2, and then a bunch of zeros is converted into base 10, which then equals   the 536870912.  

[00:08:04] Unknown:

Okay. Is that understood? Yeah. Crystal clear, mate. Okay. Great.  

[00:08:10] Unknown:

Now moving on to the version bits upgrades.   You've got version 536870912,   and that indicated readiness for SegWit   introduced through BIP 141   and authored by who?   Peter   Wille.   Sure. SegWit was activated on August 24, 2017 at block 481824.   We have version 536870913,   and that was used to signal support for BIP 91 and authored by not Peter Villa, but James Hilliard.   BIP 91 lowered the threshold required for SegWit's activation.   It was locked in at block 477120   on July 20th, 2017.   Moving on to versions 536870   914   and 916   that continued signaling for Segwit deployment through various bps.  



[00:09:00] Unknown:

Okay.   So you know how you said at the beginning we had, like, version 1,   you Americans who say 1 through 4,   and then you've got all of these different version numbers now.   Can anyone still use   versions 1, 2, 3, or 4, or do they can they only use these later ones?  

[00:09:21] Unknown:

I don't know the answer to that.   Okay. Looking at stratum dot work,   most miners are using 5368-70914   or 5368-70916.  

[00:09:34] Unknown:

So that means that it's Segwit   and   something else.  

[00:09:39] Unknown:

My understanding is one is signaling for Segwit, and one is signaling that Segwit is already implemented.   Okay. But don't quote me on that one. That's just from memory and and trying to ask many why,   for instance,   SPI crypto   uses 914.   Okay. How does that relate to what minors are doing now then? So miners use the version bits system to signal support for new upgrades,   and they gotta keep their block version numbers in line with consensus rules.   Version numbers like   5368-70912   Segwit are still recognized by the network. In each bit in the version number, a miner can signal support for different soft forks simultaneously.   For instance, if the network is ready for a future upgrade,   miners will flip the corresponding bit in their block version number, signaling their support for the upgrade.  



[00:10:35] Unknown:

Ah. That's where the flipping bits comes from. That's right.  

[00:10:39] Unknown:

You straight up flipping bits, homie. It's good, but I like it. So that allows multiple soft forks to be signaled at the same time.   So the binary number we talked about before, the 32 bit value,   the first three bits in that, the   1,   that's reserved, and it indicates that version bits are being used. So in that   1, that says to you, hey. We're no longer using the old version systems. We are now using the version bits system.   The rest of the 29 bits,   they're available for signaling specific soft forks or protocol changes   where each one of those 29 bits flipped on or off,   0 or 1, correspond to a different potential feature being activated.  

For the slow people at the back, the q and a's of this world, could you maybe do, like, an analogy or something? I can do an analogy. And since we often like to sidetrack on our normal podcast and talk about cars, I will compare this to car manufacturing.   Nice. Yeah. Bitcoin's block version numbers   can be compared   to Ford's evolution   and how they went from model numbers to VIN numbers. Do you like that? Can we go with that? I like that. Alright. Let's proceed.   Ford's first popular model was the Model T. This can be compared to the 1st Bitcoin block version 1, where it was basic.   So basic that buyers didn't even have a choice in what color vehicle they could buy. It was only yellow, wasn't it? I believe Henry Ford said you can have a car in any color so long as it's   black.  

Yeah. That was the one. Similar to early block versions that had no special features, the first blocks had no complex rules or signals, just the essentials, just like a Model t. As the years progressed, Ford expanded its lineup. More models come out. So did the need for differentiating cars between   model t to model a. You can apply that to Bitcoin. So model t could have been version 1, model a version 3 or 4, but they were indicators of slight upgrades like block height, BIP 34, stricter validation, BIP 66,   time lock transactions, BIP 65,   can be compared like going from model t to model a. It's a very good analogy, mate. Thank you. I've worked very hard on this. Have you  

[00:12:58] Unknown:

ever time locked? No. I've never done it either. I sometimes think it'd be quite cool. With your history of breaking things Yeah. That's that's a fair point. It's probably not wise.  

[00:13:10] Unknown:

Well, things have gotten more complex   besides just saying now we're gonna put block height into the Coinbase transaction.   So as the Ford   expanded its lineup, more models come out, so did the need for differentiating   between, you know, beyond   model t to model a. Eventually, car manufacturers come out with a new model labeling system, the VIN. Now VINs can reflect all the specifics of each model the world's car manufacturers   produce, Vehicle description, vehicle identifier, just like Bitcoin's   version bit system, which allows for more granular signaling.  

[00:13:44] Unknown:

So it would be like,   what's the wheelbase?   Where was it made?   What year?   That kind of stuff.  

[00:13:53] Unknown:

Sure. Yeah. The VINs came out in 1965.   And for instance, Ford, the first part of a Ford VIN manufactured in the United States is going to be 1 f.   1 manufactured in the United States,   f being Ford.   Beyond that, characters 4 through 8 indicate the engine type, the body style, the model. Much like Bitcoin's more complex version in that   29 other characters, you can signal all kinds of different bps, upgrades, forks. Extras. Yeah. Optional extras.   Yes. Optional extras. So bits 4 through 32 can each represent a specific feature or soft fork proposal, meaning multiple upgrades can be signaled simultaneously   within the same block version field.  



[00:14:38] Unknown:

Makes sense.   I've actually followed this quite nicely. I feel informed.  

[00:14:44] Unknown:

I'm very proud of you. Thanks, mate. I can tell when you're not following along because you just kinda trail off and then change subjects, and you've managed to stay on point this entire time. I did have a pre workout  

[00:14:56] Unknown:

about an hour ago, so I feel like that's still kicking in. My brain's still wired.  

[00:15:01] Unknown:

Well, while we have these endorphins running and because I want to go back to sleep here soon, let's conclude   this bite sized Bitcoin. In both cases,   as the products, being Fords or Bitcoin blocks, become more complex,   the identifiers   also can become more detailed   from simple model numbers like t and a. You like t and a, Max? T and a. Mhmm. T and e.   And then what the fuck that's supposed to mean? You cannot remember from,  

[00:15:31] Unknown:

Wolf of Wall Street. No. And they're, like, talking about spending, like, a $100,000   on a on a lunch, and then how they've got a $1,000,000   bill with some, like, hooker ring, and then they're, like, arguing with the dad who's the accountant. And he's like, oh, you can write things off for t and e. And he's like, it's not t and e. It's t and a, you fucking idiot. No. Okay. Well, it's a good film. Thanks for filling me in. Yeah. You're not seeing it? No. What?   I haven't seen a lot of movies over the past. I don't know. You've never seen The Wolf of Wall Street? No. But I'm I'm familiar enough with it. Such it was what do you mean you're familiar? You've never seen it? No. It's worth watching. It's a good film. You're such a weird guy. Like, you know all this stuff. And then   it's like you talk about one of the most famous movies in a very long time. Almost every person involved in Bitcoin would have watched, and you're like, no. I've never seen it, mate. Yeah. This coming from a guy who's never seen Star Wars. Well, I've seen bits and stuff, but it's Okay. Sure. I've seen bits and stuff, and so I get it. Yeah. You got me there. Well done. Mhmm.  

Okay. Now   in conclusion.  

[00:16:40] Unknown:

Like how car manufacturers   track and signal changes to their cars over time with VINs, Bitcoin uses block version numbers to ensure the network continues to evolve. Bitcoin is still Bitcoin   and Afford is still Afford regardless of the fact that Henry Ford is dead, and Satoshi is not Craig Wright or Adam Back or Peter Todd. Well done, mate. Thank you, sir. You've surpassed my expectations.   Can I go back to bed now? Yeah.   Yeah. I don't see why not. Hey. Before we get off the phone, I just wanted to go over with you, the next show prep that I have for the PMM show. We got to talk about great time right now.  

[00:17:17] Unknown:

Probably better if I call you back in about a couple of hours. I've got some bits to do now. Yeah.  

[00:17:23] Unknown:

Alright.  

[00:17:23] Unknown:

Cool. Alright, mate. Well, look. I'll give you a shout in a couple of hours. Alright? Great. Look forward to it. Bye. Love you. Love you too. Good night.  

[00:17:34] Unknown:

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