BIP 370 — PSBT Version 2

BIP 370 (PSBT Version 2) revises the PSBT format so inputs and outputs can be added or removed during construction, rather than fixed up front as in BIP 174's version 0. This suits interactive protocols — coinjoins, payjoins, and collaborative transaction construction — where participants contribute inputs incrementally. Repository status: Deployed.

Debate relevance: Appears in collaborative-transaction and interoperability discussions; also a precision point when 'PSBT' is discussed as if it were a single frozen format. Common misstatements: Assuming PSBTv2 replaced v0 everywhere — both versions circulate, and hardware/software support varies. As with v0, a PSBT is not a broadcastable transaction until finalized.