Cryptocurrencies

Taproot is ready but we will have to wait a little longer – Cryptocurrencies

We told you about this evolution of Bitcoin (BTC), with the arrival of Taproot and the signatures of Schnorr. Taproot is expected to make Bitcoin more fungible, improve its efficiency, and improve the privacy of transactions.

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In the heart of Bitcoin

The Bitcoin Improvement Proposal 340 to 342 have been incorporated into the code of Bitcoin Core October 15, 2020; the update Taproot is therefore ready to be deployed.

Taproot which combines data structures MAST and the signatures of Schnorr, is considered a major development of Bitcoin since the activation of Segwit.

Its activation would bring more flexibility to multi-signature transactions while improving their confidentiality.

Taproot: the road to Bitcoin’s scalability

The signatures of Schnorr do not exceed 64 bytes, while the size of the signatures ECDSA currently used to sign transactions on the blockchain BTC, is usually 72 bytes – we would therefore have a gain of about 12%.

The signatures of Schnorr group together several signatures thanks to Taproot which combines several private keys into a single “master private key”.

This consolidation is expected to reduce transaction costs, reduce the cost of operating a node, and improve network scalability.

Taproot should thus allow exchanges that use multi-signature wallets to achieve savings of around 30%. The master private key would in fact combine the emergency key, the key of the trusted third party, and the emergency backup key.

A multi-signature transaction then appears as a simple transaction for the entire network.

With the MAST, the parties concerned must agree on a single performance condition – cooperative closure – which will be published. The parties’ master private key will then suffice to prove this consensus.

The conditions not forming part of this cooperative closure are grouped together in another hash script and aggregated into a common public key.

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The process of activating Taproot which is done in soft fork, should still take some time. Knots Bitcoin must now switch from the old to the new rules without causing a division of the network.

Will this soft fork go better than Segwit? Improvements like Taproot show another major obstacle to the mass adoption of Bitcoin: Bitcoin is a gas factory for a neophyte who seeks to gain a deep understanding of it. BTC is a reserve of (high) technology, but we should think about opening it to benefit as many people as possible. No longer say that it is reserved for geeks and naives who dive into it without understanding its inner workings.

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