What Is Bitcoin (BTC)?
Who Are the Founders of Bitcoin?
What Makes Bitcoin Unique?
How Much Bitcoin Is in Circulation?
How Is the Bitcoin Network Secured?
Bitcoin Energy Consumption
What Is Bitcoin’s Role as a Store of Value?
How Is Bitcoin’s Technology Upgraded?
What Is Taproot?
What Is the Lightning Network?
How Much Is Bitcoin?
Is Bitcoin Political?
Where Can You Buy Bitcoin (BTC)?
What is Mining?
Taproot is a soft fork that bundles together BIP 340, 341 and 342 and aims to improve the scalability, efficiency, and privacy of the blockchain by introducing several new features.
The two major changes are the introduction of the Merkelized Abstract Syntax Tree (MAST) and Schnorr Signature. MAST introduces a condition allowing the sender and recipient of a transaction to sign off on its settlement together. Schnorr Signature allows users to aggregate several signatures into one for a single transaction. This results in multi-signature transactions looking the same as regular transactions or more complex ones.
introducing this new address type, users can also save on transaction fees, as even
complex transactions look like simple, single-signature ones.
Although HODLers will probably not notice a big impact, Taproot could become
a key milestone to equipping the network with smart contract functionality.
In particular, Schnorr Signatures would lay the foundation for more complex
applications to be built on top of the existing blockchain, as users start
switching to Taproot addresses primarily. If adopted by users, Taproot
could, in the long run, result in the network developing its own DeFi ecosystem
that rivals those on alternative blockchains like Ethereum.