Bitcoin Taproot Soft Fork upgrades, evolution and price

The Bitcoin network is evolving with an update called the Taproot and Schnorr Signature Update. It is considered the second most important update after SegWit in 2019. It aims to improve corporate privacy and integrate smart contracts with Bitcoin. Prices vary from Lightning Network.

What is Tap Root?

rootsIt was first claimed in 2018 by Gregory Maxwell, a Bitcoin Core contributor and former CTO of Blockstream.

Since the introduction of SegWit in 2017, Taproot has been one of the most exciting updates to the Bitcoin blockchain and is a melting pot of various technologies in the history of Bitcoin.

Taproot will be a fork that will improve the security of Bitcoin scripts and improve other business related issues.

This modification is based on the Bitcoin code.Schnorr kos npe diet, aims to improve the overall performance of the network by offering cheaper, faster and easier operations, but ultimately enables the delivery of smart contracts and improves privacy.

Taproot has also updated the Bitcoin scripting language to facilitate future Bitcoin upgrades.

What is the taproot trade for?

The purpose of the taproot modification is "Schnorr Signature".

Schnorr Signature is a cryptographic digital signature design technique developed by Claus Schnorr in the 1980s, known for its simplicity and versatility in creating short signatures.

Previously, Bitcoin used the cryptographic ECDSA as a "digital signature". ECDSA signatures are 72 bytes and each exchange of multiple signatures must be personally declared to the blockchain. Schnorr signals are 64 bytes in length, increasing performance by 11-12% and allowing the same tradeoff with blockchain as a signature, which makes smart contracts easier and faster. .

In addition to the smaller and faster ECDSA, Schnorr panels have the added advantage of being "linear".Schnorr Signs offers greater security, because it is not malleable, it solves the problem of Bitcoin's dual currency.

communion

Taproot is part of a larger effort by developers around the world to improve Bitcoin's privacy. Since the market history of the Bitcoin network is public, users can use any public blockchain browser to view all transactions in Bitcoin.

This is still the case for Taproot, howeverHowever, it can obscure the meaning of more complex changes (often referred to as “smart contracts”).For example: Lightning network industry is now bigger than blockchain, but Taproot has the same capabilities as other industries, strengthening the private sector.

scalability

Another problem that Taproot solves is Bitcoin's limited market share.

Developers cannot increase this limit unless it affects Bitcoin distribution, so they are always looking for ways to make better use of the current blockchain.

For this reason, modifications to the taproot have been introduced.MAST (Merkelized Abstract Syntax Wood)According to the existing business process, as long as the expenditure specified in the letter is too large, the volume of products will be too large, which will affect the running speed and operating costs. MAST allows you to quickly verify and analyze scripts (and the conditions they represent) and open BTC without having to create scripts, reducing the volume of BTC transactions.

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Improve privacy protection on multisig or exchange switches

Support for various industries e.g. the potential of smart contracts

Lower the cost of information in a tough business to complete a business faster and cheaper.

Improve the flexibility, privacy, and cost reduction of the Lightning Network

Why is the taproot important?

The blockchain named by the founder of Ethereum, Vitalik ButerinThe "impossible triangle" dilemmaThis shows the challenges facing the development of blockchain.

Currently, Bitcoin ranks better in terms of security and decentralization, but it ranks lower in terms of scalability.The Taproot upgrade will lay the groundwork for future additional features that land on the Bitcoin network.

In the long run, upgrades like Taproot and Lightning can make altcoins redundant or meaningless.

If a global usage situation is discovered, these features would most likely be transmitted to Bitcoin and used on the most secure network, Bitcoin.

What does Taproot mean in Bitcoin?

Reduce business costs

With Taproot, the cost of materials for the hardened market is reduced. This means that the exchange rate for using more Bitcoin wallet features (such as multiple signatures or closing times) has been reduced.

As the Bitcoin exchange rate has now reached an all time high due to increasing popularity, it could have a positive impact on the cryptocurrencies with the largest market share.

additional features

The advantages of Bitcoin mean that more Bitcoin has been used in the field of cryptography, and it is also possible to create cryptocurrencies and NFTs based on Bitcoin. Bitcoin's current supply is unreliable, which means a large chunk of Bitcoin is "chilled" rather than being traded on the stock exchange.

Other smart contracts after Taproot upgrade will be more “illiquid bitcoin” and lead to better performance in the future as demand continues to grow. What we need to beware of, however, is that the Bitcoin blockchain still lags behind most other blockchain 'non-triangle' based policies and that the impact on prices does not. is not necessary to do business now.

Taproot is a modified application for Bitcoin that will bring new features and benefits to Bitcoin users. But even after Taproot opens, it still has a long way to go and we look forward to the change it will bring.