Taproot. The most important update in the Bitcoin history
There has been talk of introducing Taproot into the Bitcoin network for some time. If you also want to know what Taproot is, what are its main advantages and why many miners dream of implementing this update as soon as possible, then the new Chatex article is written for you!
Despite all the advantages offered by the Bitcoin blockchain, scalability and privacy of user data have always been highlighted among its main problems. Taproot technology offers a solution that will improve the Bitcoin network and relieve users of the concerns about the security of user information.
What is Taproot?
Since Bitcoin is based on an open source public blockchain, it is quite easy to trace the transactions themselves at this point. Especially if they are complex and consist of several operations. And, therefore, the private data of the participants in the transfer are also at risk.
Taproot is a network upgrade planned to be implemented as a soft fork. With its help, it is possible to create transactions protected by a cryptographic scheme called Schnorr signatures. Such protection will allow combining several cryptographic blockchain records into one whole, which will significantly complicate the analysis of the operation and protect user data from fraudsters.
But that’s not Taproot’s only advantage. Since a single Schnorr signature will be used instead of multiple ECDS -signatures, the amount of data processed by the network will be reduced. This will make it easier to scale Bitcoin, will reduce transaction fees and speed up the transfer process.
In addition, the implementation of Schnorr signatures and Taproot will facilitate the creation of additional smart contracts on the network and reduce the cost of this process. Such an update could further strengthen Bitcoin’s position and start a new era for the entire crypto market.
When will the update be released?
Taproot was first proposed in 2018 by Greg Maxwell, but development continued until 2020. In January 2021, the Taproot code and Schnorr signatures were already included in Bitcoin Core 0.21.0. At the moment, the developers have launched the Speedy Trial into the Bitcoin Core codebase, which is the first significant step towards the phased launch of the update.
To date, some mining pools have already expressed their approval, the first of which was SlushPool, which included a “signal bit” in the mined block # 681458. The supporters of the soft fork were joined by Antpool, F2pool, Poolin, Foundry USA, SBI Crypto and some other pools that export almost 50% of the global network hashrate. This gives hope that the update will really take place soon. (Learn more here).
It is noteworthy that the Binance mining pool announced its readiness to support the Taproot technology. Also, 91.5% of the total computing power of the bitcoin network speaks in favor of the upgrade. This was announced on Twitter by Vice President of Poolin Alejandro De La Torre.
Miners now have a three month window during which they must accept the update. To do this, approximately 90% of the mined blocks must signal its support.
Taproot can bring us a faster, more secure and scalable Bitcoin blockchain. At the moment, the update causes a positive response from miners and ordinary network users, so we will definitely follow the events and wait for the results.