Why Taproot Is Important To Bitcoin

A Bitcoin Core developer by the name of Gregory Maxwell released the notes for Taproot in 2018. The last upgrade was SegWit in 2017, and Bitcoin had a whole civil war over block sizes — the amount of data stored in each block. Why does any of this matter, and should you sit down? I’m offended you haven’t already.

Get To The Point

It hurts when you talk to me like that. One of the biggest advancements in the addition of Taproot is the batching of signatures with Schnorr Signatures (BIP 340). This isn’t a technical walk-through, but through a feature called “key aggregation,” multisig transactions can get batched together making it much harder to distinguish between single and multisig transactions. How does that help? Two big ways:

· Sorry technical analysis guys…but not allowing the easy distinguishability between these transactions makes it far harder to determine on-chain heuristics, and provides an obvious higher level of privacy.

· Scalability meets privacy.

The Lightning Network

In a quick summary, the Lightning Network is a Layer 2 built on top of Bitcoin that batches transactions together in something called a “channel.” Each channel can have as many transactions, or signatures as it wants and can be closed at any time. Once the channel is closed, all of those signatures pile onto the blockchain and can cause congestion. In essence, the scalability could have an inverse effect of congestion.

Source link Bitcoin Magazine

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