Greetings to everyone. So I was doing some research and came across the Taproot upgrade, which seems to be interesting so I want us to know about it as well.
For years now Bitcoin network has been changing in many ways which is truly amazing since Bitcoin originated but one of the most important has been the Taproot upgrade which was implemented in November 2021. since then Taproot has indeed changed the way transactions where been processed on the Bitcoin network and it aim is to give bitcoin and many more users more enhance privacy, increase efficiency, and smart contract capabilities .
It was developed by a Bitcoin developer called Greg Maxwell, who is known for his good contributions to Bitcoin’s privacy and scalability features. The development of Taproot truly involved coming together of other developers who contributed in the Bitcoin community, including Pieter Wuille and Andrew Poelstra, among others.Their good efforts led to the proposal, discussion, and eventually the activation of Taproot, marking a significant change in Bitcoins evolution.
And many users started to benefit from Taproot upgrade
Many of us might be wondering what then is the benefit of the Taproot upgrade and what is it to bitcoin network. Well here are some of its benefits:
- The Improve Efficiency of taproot: By grouping multiple signatures with the transactions together, Taproot enables faster and more efficient transaction verification per block
- The Enhance Privacy: Taproot disguises multisignature transactions as single signature transactions making it harder to know people that participate in a transaction. This enhances user privacy and security
- The Smart Contract: this truly enable the use of more smart contracts and also financial applications on Bitcoin network which includes.
Decentralized finance (Defi)
multi signature wallet
conditional Payment's.
Bitcoin improvement proposal(Bips)Taproot upgrade is also made up of three Bitcoin Proposals this proposals are basically called (BIPs) and the three of them presents different upgrades to the Bitcoin protocol. First we have the
BIP 340 aka Schnorr Signatures: Introduced Schnorr digital signatures which are more efficient, smaller, and enable signature aggregation (combining multiple signatures into one). This is important for both efficiency and privacy.
BIP 341 aka Taproot: Defined the new "Taproot" output type, which leverages Schnorr signatures and Merklized Abstract Syntax Trees (MAST). MAST allows for complex spending conditions to be hidden unless they are actually executed further enhancing privacy and efficiency.
BIP 342 Tapscript: Updated Bitcoin's scripting language, Tapscript to accommodate the new features introduced by Taproot and Schnorr signatures. It allows for more complex and flexible smart contracts while maintaining the privacy benefits.
well the taproot has attracted attention of many more users over the years even most institutions are exploring the Bitcoin network because of it level of privacy and Efficiency. I strongly believe that As developers and users continue to explore Taproot upgrade they will be new applications that will soon come to existence.
To read more check here:
https://www.investopedia.com/bitcoin-taproot-upgrade-5210039