The Bitcoin Cash network is preparing for its next scheduled upgrade in May 2026. This upgrade is part of Bitcoin Cash's yearly upgrade cycle, which aims to enhance the network's performance, security, and overall user experience.
Below is a quick look at the CHIPs proposed for activation in May 2026 and what to expect. Node teams will coordinate final activation details as the date approaches.
Overview of CHIPs
CHIPs (Cash Improvement Proposals) are the backbone of the Bitcoin Cash upgrade process. They allow developers to propose changes and improvements to the network in a structured manner. Each CHIP goes through a rigorous review process before being accepted for implementation. To view discussion around CHIPs, visit Bitcoin Cash Research.
Key CHIPs for May 2026
- CHIP-2021-05 Loops: Bounded Looping Operations
- CHIP-2025-05 Functions: Function Definition and Invocation Operations
- CHIP-2024-12 P2S: Pay to Script
- CHIP-2025-05 Bitwise: Re-Enable Bitwise Operations
CHIP-2021-05 Loops: Bounded Looping Operations
This CHIP introduces two new VM operations, OP_BEGIN and OP_UNTIL, enabling bounded loops in Bitcoin Cash smart contracts. Previously, the lack of looping required contract authors to duplicate code for repeated procedures, making contracts longer and harder to audit. With bounded loops, contracts can express repeated logic more efficiently and concisely, reducing bytecode size and improving maintainability.
What this enables:
- More powerful and flexible contract logic, such as efficient Merkle proof validation and aggregation tasks.
- Simpler, shorter contracts that are easier to audit and less error-prone.
- No increase in validation risk: strict density-based limits ensure loops cannot be abused for denial-of-service attacks.
Value: Bounded loops unlock new classes of smart contracts and make existing ones more efficient, paving the way for advanced DeFi, token, and covenant applications on BCH.
CHIP-2025-05 Functions: Function Definition and Invocation Operations
This CHIP adds OP_DEFINE and OP_INVOKE opcodes, allowing contract authors to define reusable functions within Bitcoin Cash smart contracts. Instead of duplicating logic, contracts can now factor repeated code into functions, reducing transaction size and improving clarity.
What this enables:
- Smaller, more auditable contracts by eliminating duplicated bytecode.
- More advanced contract patterns, including cryptographic protocols, privacy-preserving logic, and complex DeFi primitives.
- Improved privacy and operational security, as contracts can hide internal logic and reduce information leakage.
Value: Reusable functions make BCH contracts more maintainable, efficient, and secure, supporting the next generation of on-chain applications.
CHIP-2024-12 P2S: Pay to Script
This CHIP makes Pay to Script (P2S) outputs standard, increases the length limits on token commitments, and unifies unlocking script size limits. P2S allows users to send funds directly to arbitrary scripts, not just to hashed scripts (P2SH), making contract interactions more flexible and byte-efficient.
What this enables:
- Safer wallet ecosystem: reduces the risk of users accidentally sending funds to unspendable contracts.
- Simpler and smaller contracts, especially for vaults, covenants, and multi-party applications.
- Larger token commitments and unlocking scripts, supporting more complex token and contract use cases.
Value: P2S improves safety, reduces transaction sizes, and enables more advanced contract and token designs on BCH.
CHIP-2025-05 Bitwise: Re-Enable Bitwise Operations
This CHIP re-enables a suite of bitwise operations in the BCH VM, including bit inversion, arithmetic shifts, and logical shifts. These operations are essential for many cryptographic and financial applications, allowing contracts to manipulate binary data and numbers at the bit level.
What this enables:
- Efficient implementation of cryptographic protocols, such as signature schemes and zero-knowledge proofs.
- More expressive DeFi and token contracts that require bitwise logic.
- Simpler and more direct contract code for tasks that previously required complex workarounds.
Value: Bitwise operations expand the range of possible BCH smart contracts, making the platform more competitive for advanced on-chain applications.
What to Expect
With the activation of these CHIPs, users can look forward to a more robust and feature-rich Bitcoin Cash network. The enhancements in smart contract functionality, efficiency, and safety are expected to attract more users and developers to the platform.
Stay tuned for more updates as we approach the May 2026 upgrade!
Summary
The May 2026 upgrade is a major step forward for Bitcoin Cash, delivering powerful new tools for smart contract developers and users. Bounded loops and reusable functions make contracts more concise and maintainable, while Pay to Script and bitwise operations unlock new use cases and efficiencies. Together, these improvements strengthen BCH as a platform for payments, DeFi, and advanced on-chain protocols.
The Buy Hodl Sell team supports the proposed upgrades to the Bitcoin Cash network and looks forward to the continued growth and innovation they will bring to the ecosystem.
