The major change in the way that digital currencies operate is the implementation of BIPs or, Blockchain Improvement Proposals. This was done in order to upgrade the way that Digital Currencies work. Many people are asking, what is the meaning behind a "BIP"? Below is an explanation of BIPs and its effect on the way that Digital Currencies work.

A BIP is a proposal of change that is designed to upgrade the way that digital currencies operate. The proposals involved with the upgrade are not extremely complicated, in fact they are relatively simple. Most digital currency networks will work to implement the changes with little to no user experience at all. This is because the major change involves a fork in the network.

There are two major Bitcoin Cash Reference that affect the way that the typical bitcoins work. These are referred to as the Bitcoin Cash and the Segwit2x respectively. The first BIP refers to the activation of an upgrade at block height of the previous year, which is now in progress. The second BIP entails that the Segwit2x project be activated after the activation of the previous year's hard work.

The two major upgrades that were mentioned above are meant to increase the security of bitcoins. Many people might be wondering, how does a user make money off of a cryptocoin like bitcoins? Here is a reference from the Bitcoin Cash website that would shed some light on that matter.

The developers behind the project have come up with a solution known as the UTXO model or the Unconfirmed Chained Block Technology. With this new technology the UTXO feature was introduced so that a user could lock in a particular amount of funds without having it go through a lengthy and complicated process such as a traditional wallet security deposit. By doing this they can keep their funds safe from many fraudulent attacks that could befall a normal transaction. This is the goal behind the creation of the Bitcoin Cash software by the Bitcoin Unlimited team.

Two different layers of the reference design are used in the UTXO model. One layer is based on a traditional proof-of-work scheme, while the second layer makes use of what is known as a virtual machine. A virtual machine is a digital computer that mimics a traditional computer such as an iSCSI, USB or disk storage device. The virtual machine is what allows users to perform a variety of tasks including sending and receiving transactions.