Bitcoin’s BIP 118 Proposal and SIGHASH_ANYPREVOUT Explained

BIP 118 is a proposed improvement to Bitcoin’s signature-hashing mechanism. Its core feature, SIGHASH_ANYPREVOUT, allows a signature to apply to compatible UTXOs instead of binding it to a single previous output point. This is important for the Lightning Network and other Layer-2 protocols because it can support transaction rebinding and reduce the burden of managing multiple sets of keys and signatures.

A recent report, “Bitcoin Covenants part 3: SIGHASH_ANYPREVOUT,” further examines how BIP 118 could be used for covenants and transaction rebinding. The current focus remains on the technical design and security trade-offs. The supplied material gives no activation date, adoption timetable or related financial figures, and does not indicate that the Bitcoin Core project has formally deployed the proposal.