Bitcoin Taproot Is Live & Here’s What You Should Know

Taproot (BIP 341)

  • Allows Schnorr signatures and Merkelized Alternative Stress Trees (MAST) to be incorporated into the scripting language.
  • For better transaction processing, the new Pay-to-Taproot (P2TR) gives the choice of either Schnorr signatures or Merkle root processing.

Tapscript

  • This is a update to the Bitcoin script that allows for more than 10,000 byte script size, which will eventually allow for the creation of smart contracts.

Taproot Impact

Here's a summary of the BIPs incorporated into the new Taproot update.

  • Allows for the consolidation of transaction outputs that increase privacy
  • Expands the ability to program within the Bitcoin blockchain and opens the door to smart contracts
  • Improves the algorithm and structure of transactions to increase efficiency
  • Adds a dual signature blockchain for added security

Conclusion

The soft fork Taproot upgrade takes Bitcoin to another level and allows it to compete with many of the features that has made Ethereum so popular. Faster transactions, more privacy and security, and the ability to add smart contracts are compelling features that may help Bitcoin maintain its place as the standard in cryptocurrency.

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