Taproot upgrade is the biggest upgrade that was successfully activated at 12:15 am on November 15 at a block height of 709,632. It is the biggest upgrade that Bitcoin has received in the last four years after it saw ‘SegWit’ or segregated Witness, the previous upgrade back in 2017.
Features Of Taproot
Taproot upgrade is likely to improve privacy features, scalability, and security of the network. With the Taproot upgrade now we can enjoy reduced fees on complex transactions and we will have better wallet functionality.
A very important feature of Taproot upgrades introduces a new digital signature scheme called “Schnorr” that will help Bitcoin transactions become more efficient and more private. Currently, cryptocurrencies use Elliptic CurveDigital Signature Algorithm which creates a signature from the private key that controls a Bitcoin wallet and ensures that Bitcoin can only be spent by the right owner.
Taproot upgrade has received universal support from the Bitcoin community and hasn’t faced any resistance like the previous update in 2017.
Is the Taproot upgrade important for Bitcoin?
- Bitcoin now will be able to execute more complex transactions, potentially widening the virtual currency’s use cases and making it a little more competitive with Ethereum for processing smart contracts.
- More flexible transaction types and lower costs are likely to support more development of DeFi and NFTs on Bitcoin.
- Bitcoin network will now be able to process more smart contracts, not unlike what Ethereum does.