WHAT IS BITCOIN TAPROOT?
WHY BTC NEEDED AN UPGRADE
In the world of Technology in general & Crypto in particular, modern innovations always evolve day by day. Large corporations or organizations are forced to adapt constantly to the new norms. BTC is no exception.
Despite being considered "king" of Crypto, BTC's technology updates are quite modest compared to other smaller cryptocurrencies. The most recent upgrade is called SegWit, which has been around since August 2017.
THE BIRTH OF TAPROOT
Realizing that a change had to be made, innovators agreed to come up with an upgrade for BTC, named Taproot. It focuses on privacy protection, scalability, transaction speed, and network security.
BTC uses P2SH to hash data, so transaction-related information is both displayed and recorded on blockchains, resulting in a slower & heavier system. In addition, it also compromises the privacy of users. The biggest change of Taproot is the introduction of MAST and Schnorr signatures.
MAST & SCHNORR SIGNATURES
- MAST is responsible for ensuring that only the necessary information is saved in the system, thus being more efficient in terms of data and privacy.
- Schnorr signature’s (invented by a German mathematician & cryptographer named Claus Schnorr) main advantage: Derive multiple keys inside a complex BTC transaction and generate a unique signature. Simply put: signatures from multiple parties to a transaction can be "aggregated" into a single Schnorr signature. This is the signature synthesis process.
- The use of MAST & Schnorr allows for the collection of less unnecessary data in the transaction output on BTC network, without compromising security. Thanks to this, users will benefit from better privacy, more efficiency and lower transaction fees.
This Taproot upgrade brings to BTC 03 major improvements:
- Reduce the amount of data transferred and stored on the blockchain.
- Increase TPS (transaction per second)
- Reduced transaction fees.
Published on January 22, 2022
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