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What Is Taproot and Why Is It Important?

First of all it is necessary to understand what changes taproot provides for bitcoin by knowing this, the reason behind the new needed changes will be understood.

 

What is taproot exactly?

Since the emergence of bitcoin, this blockchain has had its special protective and security protocols, for example all the users on this blockchain are known by a name so all of the transmissions and other acts can be followed. The earliest technologies such as SegWit, Stonewall, Chaumian, CoinJoins have made great affection for bitcoin.

Taproot is a pot of various technical innovations throughout Bitcoin’s history into one upgrade which means taproot is a combination of many Bitcoin Improvement Proposals (BIPs), resulting in a soft fork of Bitcoin’s blockchain. The most important aspect of taproot is that it successfully increases security, and allows flexibility and scalability with the introduction of a new language that is ever expanding. The features and new updates are listed below.

1.Schnorr Signatures

Bitcoin has been using the cryptographic scheme ECDSA as a digital signature. This digital signature is used when users want to do a transaction and they sign it with their private key. The taproot has been upgraded to a new signature called Schnorr. This new form of signature provides more secure and faster transactions with lower fees and it boosts bitcoin transaction scale. Here is an example to explain this feature. If you want to have a transaction with 10 people, in the first step you must have 10 private keys and 10 signatures. and the verifier would verify each key and signatures. But with this update you only need one key and one signature. Since the data tracker on the block chain cannot signify a single signed transaction to multi signed transaction by this aggregation process the security increases.

2.Taproot (BIP 341)

Taproot provides integration between schnorr signature and the Merkelized Alternative Script Trees (MAST). Which means the users have the freedom to either use schnorr signature or MAST. All the possible required scripts to transact a bitcoin are summarized to enable scripts by MAST.

3.Tapscript

Tapscript is bitcoin’s upgraded programming language(script). Tapscript provides easier additional features on schnorr signature. Bitcoin has a script limit to 10000 bites which will be removed to a larger vast of scripts or taproot contract. This will also provide more flexibility for increasing features and coding in future.

 

Why is Taproot important?

Security has been the major priority for bitcoiners and they want to be sure the new upgrade is 100%  secured. Now by upgrading Taproot, bitcoin has gained a clear way to extension of smart contracts, decentralized autonomous organizations and more. Yet just a little more than half of known bitcoin nodes are signaling support for upgrades. Which means the rest that do not go along with upgrade will not be able to run Taproots new rules when it upgrades. Taproot activation is not the end point. Users can not send or receive new type of transactions until their bitcoin wallet support the upgrades.and as history shows it will takes months for wallets to upgrade and work efficiently with this new features.for example it took 2 years for Bitcoin’s last comparably large upgrade, SegWit, to reach 50% adoption.

source: coindesk.com

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