The Bitcoin network is making history today… … Or at least it’s attempting to.
After a number of years of development, the long-awaited Taproot update is ready to run, and now it’s up to the community to choose whether or not they concur with its application.
What is Taproot and Why Does It Matter?
Taproot is a Bitcoin soft fork that integrates Schnorr cryptographic signatures, an alternative signature approach to the ECDSA presently implemented on the network. This upgrade, in very easy terms, permits the development of a kind of master key to sum up a set of signatures into a single one.
In this way, performing multi-signature multi-input deals (UTXI) on Bitcoin becomes more effective, cheaper, and much easier.
This application opens the door for various techniques of identity obfuscation by hiding the number of individuals associated with a Bitcoin transaction.
Another advantage of Taproot is that it lightens the load on the network, minimizing the deal space by a minimum of 20% (a lot more if the transactions are multi-signed), which would increase the transaction processing capacity per 2nd and substantially decrease the fees for each transaction.
In addition, numerous expect the implementation of Taproot to allow the eventual development of wise contracts, which would result in even greater adoption of the network.
In basic terms, it is a major action towards a more scalable, private Bitcoin.
The Future of Bitcoin Is In The Hands of The Community
To implement the network, the proposal must pass a significant test: the “Speedy Trial.” Miners need to update their nodes with this compatibility and signify their approval for Taproot if they concur.
The ballot duration started with the latest network trouble modification and will last 2016 blocks up until the next upgrade happens. If at that time more than 90% of the mining obstructs signal their approval to Taproot, the soft fork will be carried out in November this year.
The first block signified for Taproot was block 681458, mined by SlushPool on 2021-05-02 03:24:05 UTC.
Currently, 10.36% of the mined blocks agree with the soft fork, with 1792 blocks delegated see what occurs. If the objective is not attained, we will need to await the next adjustment.