It’s finally here! The biggest Bitcoin (BTC) update since the SegWit update in 2017, called Taproot, is live. This morning block number 709.632 was reached and so the Taproot soft fork officially implemented.
Last June, 90% of bitcoin miners already agreed to the implementation of Taproot. But today the update was actually activated on the Bitcoin network. Taproot brings a number of improvements, especially in the field of privacy, smart contracts and optimization.
In the field of privacy, so-called multi-signature on single-.signature transactions can no longer be distinguished from each other on the blockchain. This brings extra privacy. Smart contracts on the Bitcoin network are also now more flexible and can now become more complex because the maximum size of a script has been removed.
Finally, Taproot brings an optimization in the form of “Key and Signature Aggregation.” This means that signatures, i.e. the digital signatures of bitcoin transactions, can be merged into a single signature. This ensures that when an exchange sends 50 transactions to 50 people, for example, these transactions can all fall under a single signature on the blockchain (which saves space).
Taproot is welcomed with open arms by the Bitcoin community. Developers, miners and Bitcoiners are all thanked for their hard work in developing this significant update, said Anthony Pompliano.
The Taproot upgrade for Bitcoin has officially activated.
Congratulations and thank you to every developer, miner, and Bitcoiner who made this happen. ⚡️
— Pump ???? (@APompliano) November 14, 2021
A more technical explanation of Taproot can be found in this article. For example, it explains the mechanism behind the combination of transactions.
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