Bitcoin’s Taproot And Hardware Wallets

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Taproot recently activated on Bitcoin’s mainnet. The inclusion in Bitcoin’s protocol, however, is only the first step in actually reaping the benefits of Bitcoin’s latest upgrade.

“It’s been a long story that started in a diner in Los Altos, CA where Greg Maxwell, Andrew Poelstra and I somewhere in January 2018 had lunch.” – Pieter Wuille’s thread on the backstory of Taproot development and activation

The recent Bitcoin upgrade may be hard to grasp for non-technical bitcoiners — but that’s only when we focus on what it is and how it works on a technical level. That is the usual problem with communicating all things Bitcoin; sometimes we focus too much on the “what” and “how” of various Bitcoin elements, while overlooking the “why.”

The “why” of Taproot can be summed up as better Bitcoin. With Taproot, new possibilities for Bitcoin open up – advanced transactions such as Lightning Network channel management or multisigs are more efficient, private, and streamlined. In the future, only a minority of people will hold their own UTXOs on the base layer; the remaining billions will need a reliable second (and maybe even third or fourth) layer on top of the base layer. Taproot is an important step towards this future, as it makes the layered evolution of Bitcoin more accessible than ever before. And those that develop the Bitcoin tools have a responsibility to implement the catalysts for long-term improvement such as Taproot without an unnecessary delay.



Source link Bitcoin Magazine

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