What Is Taproot in #Bitcoin ?
#Taproot is a soft #fork that improves Bitcoinโs scripts to increase privacy, efficiency, and the networkโs ability to process smart #contracts. It is considered the most significant Bitcoin upgrade since the #SegWit upgrade in 2017.
The #Taproot upgrade consists of 3 distinct Bitcoin Improvement Proposals (BIP), including Taproot, #Tapscript, and its core - the new digital signature scheme called #Schnorr signatures. Taproot aims to bring several benefits to Bitcoin users, such as enhanced transaction #privacy and lower transaction fees. It will also enable #Bitcoin to execute more complex transactions and potentially widen its use cases to compete with #Ethereum, especially on smart contract capabilities and supporting Decentralized Finance (#DeFi) and non-fungible token (NFT) on the network.
How does Taproot benefit #Bitcoin?
โ> Improve network #scalability by reducing the amount of data to be transferred and stored on the #blockchain.
โ> More transactions per block (higher #TPS rate).
โ> Lower transaction #fees.
#Taproot is a soft #fork that improves Bitcoinโs scripts to increase privacy, efficiency, and the networkโs ability to process smart #contracts. It is considered the most significant Bitcoin upgrade since the #SegWit upgrade in 2017.
The #Taproot upgrade consists of 3 distinct Bitcoin Improvement Proposals (BIP), including Taproot, #Tapscript, and its core - the new digital signature scheme called #Schnorr signatures. Taproot aims to bring several benefits to Bitcoin users, such as enhanced transaction #privacy and lower transaction fees. It will also enable #Bitcoin to execute more complex transactions and potentially widen its use cases to compete with #Ethereum, especially on smart contract capabilities and supporting Decentralized Finance (#DeFi) and non-fungible token (NFT) on the network.
How does Taproot benefit #Bitcoin?
โ> Improve network #scalability by reducing the amount of data to be transferred and stored on the #blockchain.
โ> More transactions per block (higher #TPS rate).
โ> Lower transaction #fees.
Educational Post
What is Bitcoin #Taproot?
The Taproot upgrade consists of three Bitcoin Improvement Proposals (BIPs) that define three upgrades to the Bitcoin protocol. They are the Schnorr Signatures, Taproot, and Tapscript. BIPs 340, 341, and 342 are often collectively referred to as BIP Taproot. All these upgrades introduce new, more efficient, flexible, and private ways of transferring Bitcoin. Letโs understand in detail these Bitcoin upgrades.
Schnorr Signatures
A German Mathematician and Cryptographer, Claus Schnorr introduced the Schnorr Signatures that efficiently generate simple and short signatures. It is represented by BIP 340. Claus had a patent for his signature that officially expired in 2008. Satoshi adopted the Elliptic Curve Digital Signature Algorithm (ECDSA) because it was already widely in use, well-understood, secure, compact, and open-source.
Schnorr signatures can take multiple keys inside a complex Bitcoin transaction and generate a single unique signature. Hence, it means that multiple parties involved in the transaction can be โaggregatedโ into a single Schnorr signature. This process is called signature aggregation.
Taproot
BIP 341 defines how Bitcoinโs protocol will integrate Schnorr signatures. Taproot is a soft fork introduced to enhance Bitcoinโs scripts to increase privacy and ease complex transactions. With the Taproot upgrade, users can cloak all the moving parts of Bitcoin transactions that include features like timelock releases, multi-signature requirements, and others. Even when the transactions adopt these features, they will look like a single transaction.
Also, with Taproot it is possible to hide the fact that a Bitcoin script ran at all. For instance, enabling a transaction using Taproot will make adding it to a Lightning Network channel, a peer-to-peer transaction, or a sophisticated smart contract more indistinguishable.
Anyone observing these transactions will see a peer-to-peer transaction. It is worth noting that it doesnโt change the fact that the wallets of the initial sender and final recipient will be exposed.
What is Bitcoin #Taproot?
The Taproot upgrade consists of three Bitcoin Improvement Proposals (BIPs) that define three upgrades to the Bitcoin protocol. They are the Schnorr Signatures, Taproot, and Tapscript. BIPs 340, 341, and 342 are often collectively referred to as BIP Taproot. All these upgrades introduce new, more efficient, flexible, and private ways of transferring Bitcoin. Letโs understand in detail these Bitcoin upgrades.
Schnorr Signatures
A German Mathematician and Cryptographer, Claus Schnorr introduced the Schnorr Signatures that efficiently generate simple and short signatures. It is represented by BIP 340. Claus had a patent for his signature that officially expired in 2008. Satoshi adopted the Elliptic Curve Digital Signature Algorithm (ECDSA) because it was already widely in use, well-understood, secure, compact, and open-source.
Schnorr signatures can take multiple keys inside a complex Bitcoin transaction and generate a single unique signature. Hence, it means that multiple parties involved in the transaction can be โaggregatedโ into a single Schnorr signature. This process is called signature aggregation.
Taproot
BIP 341 defines how Bitcoinโs protocol will integrate Schnorr signatures. Taproot is a soft fork introduced to enhance Bitcoinโs scripts to increase privacy and ease complex transactions. With the Taproot upgrade, users can cloak all the moving parts of Bitcoin transactions that include features like timelock releases, multi-signature requirements, and others. Even when the transactions adopt these features, they will look like a single transaction.
Also, with Taproot it is possible to hide the fact that a Bitcoin script ran at all. For instance, enabling a transaction using Taproot will make adding it to a Lightning Network channel, a peer-to-peer transaction, or a sophisticated smart contract more indistinguishable.
Anyone observing these transactions will see a peer-to-peer transaction. It is worth noting that it doesnโt change the fact that the wallets of the initial sender and final recipient will be exposed.