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Bitcoin network update: what Taproot is
What is Taproot update_
Cryptocurrency
13.12.2021
Updated 20.12.2021
11:34

The Bitcoin network has never been perfect. It has a range of contentious characteristics and parameters of use, which are outdated ones. But most of them may become a thing of the past due to the blockchain update called Taproot. We are going to tell you about this historical event in our article.

What Taproot is: simple explanation 

Taproot is a complex improvement of the Bitcoin blockchain. Its main goal is to increase the flexibility of smart contracts as well as improve the confidentiality of transfers within the Bitcoin network.

The Taproot update is associated with:

Most experts are sure that Taproot implementation will positively affect the dynamics of Bitcoin price in a long-term perspective. That must happen due to improvements of significant characteristics that will make the Bitcoin blockchain and the coin itself more convenient to all types of users.

The positive effect must appear as a result of the following modifications:

  1. A Schnorr signature scheme.
  2. A MAST concept.
  3. A tool called Tapscript.

Schnorr Scheme

A Schnorr scheme is a complex system of digital signatures allowing to improve the confidentiality and scalability of the Bitcoin network. Its concept was thought through back in 1991 by professor Claus-Peter Schnorr.<

In contrast to the ECDSA algorithm used for blockchain creation in 2008, the Schnorr signature scheme:

The size of Schnorr signatures is 10% lower compared to its technological predecessor – the ECDSA algorithm. And that is exactly the reason that will allow to decrease transactions and increase their speed. It will also make operations in blockchain more affordable.

Additional novelty — the Tapscript tool

Tapscript (BIP 342) is a tool that will carry out the verification of scripts created on the basis of Taproot. It will monitor Schnorr signatures and check data about transfers.

Advantages and disadvantages of Taproot: opinions and reviews of the community 

The reviews of most professionals and regular users form a single and prevailing opinion that the Taproot update with Schnorr signatures and Tapscript is a new branch of Bitcoin blockchain evolution due to such factors as it:

  1. Reduces fees.
  2. Increases bandwidth.
  3. Improves confidentiality, a relatively low indicator of which has been the basis for Bitcoin criticism for a long time.

All of that improves the positive rate of the Bitcoin project development from key investors and will only push its price up.

But there is also a part of the community, which refused to support the update and believes that the use of new scripts will simplify the tracking of receivers of cryptocurrency transfers. On the other hand, due to the lack of conclusive evidence from the skeptics, they faced strong criticism.

How Taproot update will affect the BTC future

The further functioning of blockchain and its improvement based on Taproot will result in higher interest in Bitcoin and demand for this currency.

The Taproot update is revolutionary within the BTC ecosystem and is intended to make it more competitive against the background of other tokens of the world’s top. The BTC’s indicators of scalability and performance are far from such projects as Cardano, Ethereum, and Litecoin yet. But Taproot is a good basis for further modifications of the blockchain.

There is a constant technological race in the field of decentralized technologies. The Taproot update is the beginning of a smooth process of development of the most expensive cryptocurrency, the community of developers of which wants to lead its technical characteristics in accordance with modern requests of users and investors.

Taproot - FAQ

Taproot is a complex improvement of the Bitcoin blockchain. Its main goal is to increase the flexibility of smart contracts as well as improve the confidentiality of transfers within the Bitcoin network.

1.Reduces fees.
2.Increases bandwidth.
3.Improves confidentiality, a relatively low indicator of which has been the basis for Bitcoin criticism for a long time.