Misplaced Pages

Taproot (fork)

Article snapshot taken from Wikipedia with creative commons attribution-sharealike license. Give it a read and then ask your questions in the chat. We can research this topic together.

This is an old revision of this page, as edited by Cerebellum (talk | contribs) at 13:13, 19 June 2021 (wikify, add ref copied from Bitcoin). The present address (URL) is a permanent link to this revision, which may differ significantly from the current revision.

Revision as of 13:13, 19 June 2021 by Cerebellum (talk | contribs) (wikify, add ref copied from Bitcoin)(diff) ← Previous revision | Latest revision (diff) | Newer revision → (diff) Soft fork change in the transaction format of Bitcoin

Taproot, is the name used for a proposed and agreed soft fork change in the transaction format of Bitcoin. The fork adds support for Schnorr signatures, and improves functionality of Smart contracts and the Lightning Network. The fork will take effect in November 2021.

Bitcoin Improvement Proposal numbers BIP340, BIP341, BIP342 are collectively known as taproot.

Summary of what Taproot will achieve

  • Complex transactions, such as those requiring multiple signatures or those with delayed release, indistinguishable from simple transactions in terms of on-chain data.
  • Reduce transaction costs: The data size of complex Bitcoin transactions will be reduced, which will lead to lower transaction fees.
  • Support for more complicated conditions for a transaction via new type of signature.
  • Benefits for the Lightning network: More flexibility, privacy enhancement, lower costs

References

  1. Sigalos, MacKenzie (2021-06-09). "Bitcoin just got its first makeover in four years". CNBC. Retrieved 2021-06-15.
  2. All Bitcoin Improvement Proposals, including BIP340
Category: