Bitcoin Taproot Upgrade and How Will it Benefit Bitcoin?

[coins4z]

The Bitcoin Taproot upgrade, a major advancement since Segregated Witness (SegWit) in 2017, enhances network privacy and efficiency. It was set in motion on November 14, 2021, after a miner consensus in June. Its six-month lead-up ensured widespread adoption. Taproot fuels smart contract integration, trimming intermediaries from transactions, and paving the way for decentralized finance (DeFi). This upgrade brings notable changes to the Bitcoin protocol, promising enduring benefits.

What is Bitcoin Taproot?

Taproot is a significant upgrade to the Bitcoin protocol that enhances privacy, efficiency, and functionality. It was activated in November 2021 through a soft fork. The primary goal of Taproot is to improve the scripting capabilities of Bitcoin’s smart contracts while also enhancing the privacy of complex transactions.

In simpler terms, Taproot allows multiple conditions to be bundled into a single transaction, making it more private and efficient. It does this by making all possible conditions of a transaction look the same on the blockchain, effectively hiding the specific conditions that were not chosen. This makes Bitcoin transactions appear more uniform and less distinguishable, thus increasing privacy.

Features of the Taproot Upgrade

The Taproot upgrade for Bitcoin introduces three key features:

• Schnorr Signatures (BIP340): Schnorr Signatures improve transaction validation speed and security. They create shorter, aggregated signatures from multiple keys within a complex transaction, reducing transaction time. This upgrade also enhances privacy by making transactions appear as peer-to-peer interactions, although wallet addresses remain visible.
• Tapscript (BIP342): Tapscript is an upgraded coding language for Bitcoin scripting. It leverages Schnorr Signature aggregation to increase block space efficiency. This enhancement brings greater flexibility to the network, enabling new features like smart contracts.
• Taproot (BIP341): Utilizing the Merkelized Alternative Script Tree (MAST), Taproot optimizes transaction data storage on the blockchain. It replaces complex transaction details with the executed conditions, reducing data volume and improving transaction speed. This enhances both privacy and scalability.

I covered the story ahead at: https://news.todayq.com/bitcoin-taproot-upgrade-and-how-will-it-benefit-bitcoin/

[EL MOHA]

Nice thread mate,

One thing I read on the forum  that differentiates this taproot from the native segwit is the use of this Schnorr signature over the usual ECDSA. The advantage it offers is the aggregation of keys which solves the problem of verifying transactions by nodes individually even in multi inputs to batch verification. This method has made it easy for not only multi sig wallets but also when sending from various inputs to a single address.

Example is when consolidating one’s input (multiple UTXO into one). Aside this, other transactions are mostly suited to use native segwit (bc1q). Like sending from one address to multiple addresses.

There are also many threads that actually discuss taproot on the forum. You can check them
1. https://bitcointalk.org/index.php?topic=5406199.0

2. How to create taproot addresses: https://bitcointalk.org/index.php?topic=5405946.0

3. Bitcoin wallets that supports taproot: https://bitcointalk.org/index.php?topic=5371499.0

[hd49728]

Taproot needs time to be accepted on more platforms but at least it has advantage as one type of Segwit and it has good foundation for adoption than Native Segwit which needed a few years to be massive accepted.

To be proactively generate your Bitcoin addresses and use them with full controls, you must use non-custodial wallets.

If you use online accounts, exchange accounts as your Bitcoin wallets, you will totally rely on their support for whatever address types. It is surely inconvenience plus unsecure, unsafe for your bitcoins. It is not your key, it is not your bitcoin.

[Charles-Tim]

I hope you know that this is a bitcoin forum, we are not new to what taproot is even before it was implemented.

Taproot proposal
Create Taproot address for your Bitcoin
Bitcoin Taproot (Bech32m - bc1p) adoption
Taproot transactions and significance
Wallets supporting Taproot
Pay-to-taproot (P2TR) transaction fee

[Mate2237]

~

Op is a newbie but he would have make some research before creating the thread. Op you thought that taproot is new thing in the forum. Even at the Op tried for the thread, the mistake he did was not finding it out to know if there are related thread exist in the forum and when he has confirmed that there are then, he would have make comments in them. And this would been a quality comment in there. And one thing op supposed know is that nothing is related to bitcoin and cryptocurrency is not new in the forum. One thing I also know is that taproot is not yet more popular in the space so it needs more push for more acceptance. At first I thought op used AI and I checked online, there are related articles but not the same.

[ImThour]

Any improvement proposal that improves the security and speed of the whole transaction is always appreciated and should be implemented first. I really want Lightning Network to be the fastest and if that's the case, it will surely be used by the biggest brands in the world for easy payments. Taproot (BIP341) is going to provide a better data structure to store and optimize more data which will save a lot of space if we talk about millions of transactions over the blockchain.

[Faisal2202]

I hope you know that this is a bitcoin forum, we are not new to what taproot is even before it was implemented.

Exactly but tbh i think that's a good way of reminding things out to members like me who have short memory. So I think we should appreciate the OP here as he made a good post. And i think this mechanism still need a lot of upgradation of some touches or some time to get some hype but lighting network is still the most prefer able one IMHO.

And one more thing i have seen that if a newbie learn something new they try to make a new topic and i think that's a good thing because in this way they will get to know more about there knowledge as other will correct them and plus point is they will never forget those points.