Bitcoin successfully activated TaprootNovember 22, 2021
The Bitcoin network has just successfully activated Taproot, one of the most important updates since 2017. The final update Segregated Witness (SegWit) was integrated for the first time to solve Bitcoin’s scaling problem. .
Taproot is a soft fork for the Bitcoin network, aimed at improving scripting and privacy. To do this, the soft fork introduces the concept of Merkelized Abstract Syntax Tree (MAST).
Sjöberg pointed out that enabling Taproot shows that Bitcoin can perform network upgrades again, which is extremely important for the longevity of the Bitcoin network.
The update will also add Schnorr signatures, essentially making multi-signature transactions unreadable, according to Bitcoin miner Alejandro De La Torre. This activation is based on 90% consensus from miners and mining pools between blocks 709,488 and 709,632.
The previous SegWit upgrade was intended to address transaction flexibility, while improving the scalability of the Bitcoin network. For its part, Taproot targets three key innovations – Optimization, Privacy, and Smart Contracts.
As a matter of optimization, Key and Signature Aggregation will now allow the aggregation of public keys and signatures. For example, if an exchange sends 100 transactions to 100 people, they can now compress all 100 public keys into one and all 100 signatures into one.
The upgrade was confirmed when 90% of Bitcoin operating nodes reached consensus on June 12. Even so, the rollout of the upgrade didn’t happen until today. The month-long delay is designed to allow enough time for inspection and testing. This will reduce the possibility of problems during the upgrade.
The Bitcoin network has undergone numerous community-driven hard forks and soft forks. However, the current update won’t magically improve the network’s capabilities and privacy in the short term. It will take some time.
Jimmy Song, a programmer and Bitcoin technical expert, addressed this in an interview with Natalie Brunell.
Expect BTC price to set a new record
At the last major upgrade of 2017, Bitcoin was valued at $4,000 and after that, it continued to rise to a record of nearly $20,000 in just four months. Currently, BTC has gained about 2% in price in 24 hours and is trading at $64.771, presumably thanks in part to the aforementioned upgrade. Hopefully history will rhyme and Bitcoin can set new records in the near term.