Trends Cryptos

Bitcoin Taproot update just around the corner

Temps de lecture : 2 minutes

Bitcoin’s long-awaited Taproot upgrade is just around the corner. Just 850 blocks away, the upgrade is expected to go live this week.

According to experts, Taproot is one of the most significant upgrades to the network — the biggest since SegWit, which went live in 2017. And Taproot should not only extend Bitcoin’s smart contract and scripting capabilities, but also :

  • improve privacy protection measures ;
  • Reduce multi-signature/complex transaction costs: it will reduce the data required to process complex transactions, such as those involving multiple signatures or time blocking;
  • Improve wallet functionality by allowing developers to define more complex wallet conditions;
  • improve privacy in second-layer solutions such as the Lightning network by making channels look like normal Bitcoin transactions when integrated into Lightning implementations.

Taproot will also enable the use of a solution called MAST (Merkelised Abstract Syntax Tree), which aims to make smart contracts more efficient and private by revealing only the relevant parts of the contract, with the rest remaining hidden. It will also allow smart contracts, regardless of their complexity, to be treated as a normal transaction on the blockchain.

The update will be accompanied by Schnorr, a soft fork that will improve confidentiality, scalability and speed, as it encrypts multiple keys into a single key. It is a signature system that also allows a transaction to hide the existence of a MAST structure. In combination with Schnorr signatures, Taproot will allow users to mix transactions carried out by complex wallets (e.g. multisig or time-locked) with those using simple signatures only, allowing anyone to hide their use of multisig.

First proposed by Bitcoin Core contributor and former CTO of blockchain major Blockstream Gregory Maxwell in 2018, the update was confirmed in mid-June this year after passing the minimum 90% miner approval threshold, leading to a November implementation that went live on Testnet in early July.

As the event approaches, users are urging all parties involved to upgrade their nodes.

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