CIPs (Cardano Improvement Proposals)

CIPs (Cardano Improvement Proposals) are formal documents that outline proposed changes, enhancements, or new features for the Cardano blockchain. They are designed to provide a structured process for suggesting and discussing improvements to the Cardano ecosystem. CIPs are similar to other blockchain improvement systems like BIPs (Bitcoin Improvement Proposals) or EIPs (Ethereum Improvement Proposals). They are used to gather community feedback, document technical specifications, and implement updates to Cardano’s protocol, smart contracts, or applications.

Key Features of CIPs

1. Structured Process:
   • CIPs follow a defined format to ensure clarity and consistency. Each proposal includes a description of the problem, the rationale behind the change, technical specifications, and any potential impacts on the network. This standard format makes it easier for the community to understand and discuss proposals.
2. Community-Driven:
   • Anyone in the Cardano community can submit a CIP, from developers to community members. CIPs are open to discussion and review by the broader community, making them an important tool for fostering collaboration and decentralized governance.
3. Types of CIPs:
   • There are different types of CIPs based on their focus:
     • Standards Track CIPs: Proposals that affect the core features of Cardano, such as consensus changes, network protocol updates, or transaction processing.
     • Process CIPs: Proposals that outline processes or guidelines for decision-making within the Cardano ecosystem, but don’t directly affect the network’s code.
     • Informational CIPs: Documents meant to provide general guidelines, recommendations, or information to the community but not intended for implementation in the protocol.
4. Approval Process:
   • CIPs go through a series of steps, including drafting, community discussion, review, and potential revisions before being considered for approval. Some CIPs may require further technical testing or peer review by developers and researchers before they are implemented on the main network.
5. Governance Mechanism:
   • CIPs are an essential part of Cardano’s decentralized governance model. Through CIPs, the community has a formal mechanism to propose and vote on changes that shape the future of the network. This approach ensures that Cardano remains a community-driven and evolving ecosystem.
6. Example CIPs:
   • CIP-0001: This is the foundational CIP that defines the Cardano Improvement Proposal process itself, detailing how future CIPs should be structured and submitted.
   • CIP-0025: A proposal that outlines standards for representing Non-Fungible Tokens (NFTs) on the Cardano blockchain.
   • CIP-0030: A specification for integrating the Cardano dApp connector, which enables seamless wallet interactions with decentralized applications.
7. Technical and Non-Technical Proposals:
   • While many CIPs focus on technical aspects of the Cardano protocol (e.g., upgrades to consensus algorithms or transaction processing), others might be related to user experience improvements, best practices for wallet integration, or standards for NFTs and tokens.

Why Are CIPs Important?

• Transparency: CIPs provide transparency in how changes are proposed, discussed, and implemented within the Cardano network. The entire process is open and available for the community to track and participate in.
• Innovation: By allowing any member of the community to propose improvements, CIPs encourage innovation and new ideas that can advance the ecosystem.
• Collaboration: CIPs create a space for collaboration between developers, researchers, and users in discussing and refining proposals to ensure they meet the needs of the broader Cardano ecosystem.
• Sustainability: Through a structured improvement process, CIPs contribute to the long-term sustainability and adaptability of Cardano, helping the blockchain evolve without compromising its core principles.

Structure of a CIP

The five key elements of a Cardano Improvement Proposal (CIP) include the following:

1. Abstract

• Purpose: A concise summary of the proposal, outlining its key objectives.
• Role: This provides an overview of what the proposal aims to accomplish in a few sentences. It allows readers to quickly understand the core of the CIP.

2. Motivation

• Purpose: Explain the reasoning behind the proposal and why it is necessary.
• Role: This section justifies the need for the proposed change or feature. It outlines the problems or inefficiencies the CIP is intended to solve.

3. Specification

• Purpose: A detailed description of the proposal’s technical aspects and how the feature or improvement will be implemented.
• Role: This is the most technical part of the CIP, offering a step-by-step explanation of the functionality, including diagrams or code when necessary.

4. Rationale

• Purpose: Clarify the reasons for certain design decisions and provide alternatives that were considered.
• Role: This helps reviewers understand the thought process behind the proposed solution and why certain approaches were chosen over others.

5. Path to Active

• Purpose: Details the steps required to move the CIP from proposal to implementation and activation.
• Role: Outlines the necessary actions, such as consensus building, testing, and deployment, that need to occur for the CIP to be adopted and become part of the network.

These elements ensure that a CIP is thoroughly explained, technically sound, and feasible to implement within the Cardano ecosystem​.

The CIP Lifecycle

1. Draft: The initial proposal is submitted, outlining the problem, rationale, and technical details of the proposed change.
2. Discussion: The community discusses the CIP on platforms like GitHub or Cardano’s forums, providing feedback and suggestions for improvement.
3. Review: After incorporating feedback, the proposal is reviewed by experts, developers, or committees within the ecosystem.
4. Accepted or Rejected: If the proposal passes technical review and gains consensus from the community, it may be accepted. If there are significant issues, it may be revised or rejected.
5. Implementation: Accepted CIPs are implemented in the Cardano protocol or ecosystem, either through code changes or community practices.

List of CIPs

To see a list of the latest CIPs and all of their details, visit the GitHub like below:

https://github.com/cardano-foundation/CIPs?tab=readme-ov-file

Summary

Cardano Improvement Proposals (CIPs) are a critical part of Cardano’s decentralized governance system, enabling the community to propose, discuss, and implement changes to the blockchain. With a transparent, open process, CIPs allow the ecosystem to evolve by gathering feedback from developers, researchers, and users, ensuring that Cardano remains innovative, secure, and adaptable.

💡 Helpful References

Github - Cardano CIPs
https://github.com/cardano-foundation/CIPs?tab=readme-ov-file

Frequently Asked Questions about CIPs

1. What is a Cardano Improvement Proposal (CIP)?

A CIP is a formalized document that describes new features, standards, or changes to the Cardano ecosystem. It’s a way for the community to propose, discuss, and approve improvements to the Cardano network.

2. How do CIPs work?

CIPs are submitted by community members who wish to suggest changes or enhancements to Cardano. Once a CIP is proposed, it undergoes community discussion and review. If approved, the change is implemented within the Cardano network.

3. What are the different types of CIPs?

CIPs are generally categorized into various types:

• Standards Track CIPs: Proposals that change the network or protocol.
• Informational CIPs: Documents that provide guidelines or information, without proposing new features.
• Process CIPs: Proposals for changes to the CIP process itself.

4. Who can submit a CIP?

Anyone in the Cardano community can submit a CIP. The process is open and collaborative, allowing developers, users, and stakeholders to propose improvements to the Cardano blockchain.

5. How do I submit a CIP?

You can submit a CIP through the official GitHub repository for Cardano CIPs. The proposal needs to follow a specific format, including sections for the motivation, specification, and rationale behind the change​.

6. What happens after a CIP is submitted?

After submission, the CIP undergoes community discussion. Feedback is collected, and the proposal may be revised. If it garners sufficient support, the CIP is reviewed by CIP editors and can be accepted, rejected, or deferred.

7. How are CIPs approved?

CIPs are approved through a consensus process involving discussion, revision, and validation by the Cardano community and the CIP editors. Accepted CIPs are implemented by developers.

8. Why are CIPs important?

CIPs are vital because they create a formal, transparent process for improving the Cardano blockchain. They allow the community to contribute directly to the development and evolution of the network.

9. Can CIPs be updated after they are accepted?

Yes, CIPs can be updated through amendments if further refinements are needed. Changes to accepted CIPs must go through the same process as new proposals.

10. How do CIPs relate to the Cardano roadmap?

CIPs help implement features or improvements that align with Cardano’s broader development goals. They ensure that changes to the network are driven by the needs of the community and the evolving roadmap.