BITCOIN SET TO INTEGRATE TAPROOT SMART CONTRACTS | BITCOIN’S BIGGEST UPDATE IN 4 YEARS !

SMART CONTRACTS TO BITCOIN?

When you first think of Bitcoin and Ethereum you know the basic fundamentals that make their core worthy of it’s dominance. Ethereum has been updated and improved many times before. Bitcoin on the other hand, hasn’t really seen many updates in quite some time. Alas, it’s first major upgrade to its code since the introduction of segregated Witness in 2017, is finally here. Taproot. Allow me to give a quick summary of what Taproot is and what is in store for Bitcoin next.

Taproot

Privacy, security and scalability are limitations that Bitcoin faces and the core developers of the Bitcoin Network are constantly working on solutions that can address these issues, requiring years of development and testing and achieving collective consensus by miners.

Taproot is a soft fork network upgrade for Bitcoin that both, improves privacy and adds complex transactions through the use of the “Schnorr” algorithm.

The upgrade will allow identity obfuscation by combining multiple signatures and transactions in a single one, which effectively introduces multi-signature and multi input transactions that are far more efficient and cheaper. A transaction can use multiple features and functions all while not disclosing its real form to other network participants. A P2P transaction, smart transaction and even a “lightning network” transaction will all lock on the same block and blockchain explorer after taproot goes lives in November.

It will improve scalability by reducing transaction space on the blocks by at least 20%. This amount will be higher if the majority of transactions are under the “multi-sig” by aiding network congestion. This brings an overall higher transaction output for the network.

green block means that it signaled readiness for Taproot activation. A red block means that it did not. Transparent blocks represent upcoming blocks.

SPEEDY TRIAL

Speedy Trial is the process the Bitcoin community of developers and stakeholders agreeing and determining if there was enough support from the miners to go ahead with the Taproot soft fork. For months, even once it was clear that there was widespread support for the upgrade, there was still debate as to how it would be implemented.

Any alteration to Bitcoin’s code requires consensus; there is no one person or entity “in charge” that can unilaterally make those changes. Arriving at that consensus conclusion as seen above can sometimes be even more complicated than writing the code itself. In this case, Speedy Trial, devised by David Harding and Russell O’Connor, was the solution that got the most community support.

What’s Next?

These smaller and faster Schnorr signatures also have the added benefit of being “linear,” a combination that will boost Bitcoin’s transaction privacy and allow for more lightweight, encoded contracts with self-executing rules. Also know as, Smart-Contracts.

In the long run, Taproot’s tooling and coding improvements will translate to an all around better experience for crypto enthusiast in terms of overall performance, as well as privacy improvements to multi-sig technology, privacy software and even scaling tech like the Lightning Network.

For more of an in-depth and detailed dive, our team has made a video for your understanding

We will be keeping you up to date here on the TCL channel for more up to date changes and updates closer to the date.

Cheers.

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