How will Taproot affect Multi-sig Ledger Wallets?

[sirTinT]

I'm relatively new to Bitcoin and I'm setting up a hardware wallet for the first time.

I'd like to set up a multi-sig wallet on my Ledger and I'm wondering how the new Taproot changes will affect multi-sig on my Electrum wallet.

If I set up my new wallet on my Ledger to use the existing multi-sig configuration, what will I need to do to be able to get the efficiency and privacy benefits of Taproot when these features become available.

Will I need to recreate the wallet?

Is there an estimate of when Multisig2 support will be available in Electrum?

(Since I'm a newbie, please correct any misunderstandings I have about how Taproot and Multi-sig2 work).

[ranochigo]

If I set up my new wallet on my Ledger to use the existing multi-sig configuration, what will I need to do to be able to get the efficiency and privacy benefits of Taproot when these features become available.

Will I need to recreate the wallet?

Yes. You need to use Taproot addresses to be able to reap the benefits. The hardware wallet has to support Schnorr rsignature as the signing is done on the hardware wallet itself. I haven't heard about any developments on this though.

Is there an estimate of when Multisig2 support will be available in Electrum?

Nope. Taproot activation is still quite far away on mainnet.

[pooya87]

Since the actual finalized code for Taproot activation was added recently there isn't any other completed implementation of it available, that includes Electrum and Hardware wallets. We have to first wait for them to implement these new features and see them extensively be tested then be used with real bitcoins.
Then you'll have to both create a new wallet and transfer your bitcoins using an on-chain transaction to that new wallet to be able to use the new features.

[Charles-Tim]

Taproot will likely be activated in bitcoin core before this year ends, then electrum developer will begin to work towards having electrum to support it which will be included in any update that will be released. The privacy is in indistinguishable transactions which will solely be handled by the schnorr signature in which people will be unable to know if a transaction is actually multisig or not. You will need to create new wallet on electrum once electrum support it, and go for taproot, taproot addresses will be generated.

[dkbit98]

Will I need to recreate the wallet?

With Taproot you will need to generate new address format and your old addresses, including regular bech32 addresses will not work with taproot multisig, but format will be very similar and starting with bc1p.
You don't need to understand in details how multisig will work but you should know that fees will be much lower than current multisig setups, and privacy will be much higher with some optimizations.

Is there an estimate of when Multisig2 support will be available in Electrum?

There is no estimations when Electrum and hardware wallets will support Taproot address formats, but Taproot activation should happen at the end of 2020 and I am expecting that next year Electrum and other wallets will support it.