After four years, Bitcoin has a new update called “Taproot.” Currently, Bitcoin is still the most popular and highest value cryptocurrency. No significant improvement had been seen for some time. The change is scheduled to occur in November 2021.
Taproot is a technology that aims to improve the privacy and capacity of Bitcoin and create complex smart contracts to improve its benefits and help in the evolution of its system. Taproot includes optimizations with Schnorr signatures (a lightweight signature scheme), which allows improving the privacy of Bitcoin and other cryptocurrencies. Another important feature of this update is that it allows the application of new technology to improve the capacity and scalability of the blockchain network; MAST (Merkelized Abstract Syntax Trees) technology is an important tool builder, allowing to take Bitcoin to a new level.
With these improvements, the conventional and advanced transactions made within the Bitcoin blockchain will be complicated to distinguish before the human eye. At the same time, it will improve the network’s security since it prevents the disclosure of transaction data made. Taproot allows the Bitcoin network the expansion of its multi-signature capacity to create smart contracts within its system.
First consensus change since SegWit
In 2015 the improvement SegWit (Segregated Witness) had been proposed, a slight variation of Bitcoin that allows to “relax” the network load, which was implemented in 2017. Now with this new update of 2021 cataloged as soft work (soft work), seeks to take Bitcoin to the next level, Taproot has already been accepted by the Bitcoin community and will bring important changes. According to a Bitcoin developer, activation will occur automatically in block 709632 on November 14, 2021. Taproot is considered to be the first consensus change since SegWit was activated in August 2017.
What changes will there be?
The main change will be the “fingerprint” that each user leaves in the transaction. After November 14, 2021, the change is made to the Schnorr firms, which allow the operations of multiple firms to be made illegible; Being on the blockchain and being public. Anyone can currently track the movement of transactions made; with this update, Bitcoin tries to improve privacy with P2SH and MAST. Taproot will allow you to hide the moving and added part of any multiple operations to look like a single transaction.
This means that complex operations will be unified under the same information identifier, which will allow adding more privacy and maintaining the public reference. This is how the update improves the efficiency of the system, reducing the amount of data that is transferred and stored in the chain of blocks, leaving all the information of each block “compressed,” and at the same time, there will be a higher rate of transaction per block, which means lower transaction rates.
The signatures will no longer be malleable (modifiable); currently, it is possible to modify a signature “before” the operation is confirmed, which exposes it to possible attacks, however, with the Taproot update, this will change since an additional security layer will be added to the Bitcoin network.
What do you think about this topic? Did you already know about this new Bitcoin update?
If you want more information about buying and selling cryptocurrencies, you can subscribe to our newsletter and receive a free report entitled blockchain technology applications and their relationship with decentralized systems.
Image by vjkombaj via Pixabay.com under Creative Commons license.