Wednesday, December 8

Taproot Coming: The First Big Bitcoin Update Since 2017


We are 8 days away from the new bitcoin update to take action, the update will bring more privacy and scalability to the bitcoin network, favoring cryptocurrency users. The last big bitcoin update, called SegWit, happened in 2017, which brought an increase in block sizes.

Taproot is a softfork in the bitcoin network that will bring improvements such as privacy, scalability and performance, but nothing happens in Bitcoin without consensus, everything is done carefully to minimize errors, which can be catastrophic within a absolutely decentralized network like that of bitcoin.

The BIP9 and Speedy Trial is a softfork deployment method where miners and mining pools help coordinate the deployment of a softfork. In May of this year, signaling for the activation of the new Taproot update began.

Taproot

Mining is divided into epochs, exactly in 2016 blocks, the mining difficulty is defined according to the epoch. Each block is generated every 10 minutes, meaning that within a period of 2016 blocks, 90% or 1815 of the 2016 blocks must signal readiness.

In the first few weeks of June, Taproot’s approval signaling was completed, and activation scheduled for November began.

Taproot and the improvements to the network

More privacy and lower rates

With the incorporation of the Schnorr algorithm, it will be possible for signatures MultiSig be aggregated into a single code, which will make the transaction smaller, a considerable reduction in transaction costs. Multi-signature refers to requesting multiple signatures from a wallet to authorize a bitcoin transaction.

With the Schnorr algorithm built in, we will have increased privacy by condensing the signatures, basically if we have 10,000 signatures in a single transaction, it will be almost impossible to know the identities of the participants.

More flexibility

It will be incorporated into CoinSwap, which works as an intermediary protocol, putting a layer between A and B, thanks to the schnorr algorithm, privacy will be further increased through coin mixes.

Lightning Network will also be more secure, currently it uses HTLCs (hash time locked contracts) for transactions, with the new update, it will use PTLC (point time lock contracts) so that when it uses nodes, it adds information to the hash, which consequently changes the hash for each node it passes through, making it difficult to track transactions.

New steps for Bitcoin

Over the years of bitcoin’s life, developers have always worked to bring improvements and performance, customizing the network and making it easier for users. After 4 years, we are seeing a new update being incorporated, updates that have been discussed and worked on for several years.

The update is scheduled for this month, there are just a few days to see Taproot being activated.





livecoins.com.br