It has been a while since the latest Bitcoin network upgrades in 2017. With the increasing number of transactions every single day, the Bitcoin network needs to undergo some upgrades necessary to accommodate the high-volume transactions and provide better security and privacy for the users.
In order for the network to carry out the next upgrade, it needs the approval of the miners or stakeholders from around the world. The good news is that most of the Bitcoin stakeholders have approved the planned upgrade for the Bitcoin network, which is called the Taproot upgrade.
Just so you know, the Taproot upgrade is the much-needed upgrade for the Bitcoin network, and it is the first upgrade for the network in the last four years.
What is the Taproot upgrade? This simple guide will explain all you need to know about this upgrade.
Taproot Upgrade Explained in Simple Words
Taproot Upgrade is the planned upgrade for the Bitcoin network, which will be released in November 2021. This upgrade will add various important features to the network, which will help enhance the security and privacy of all transactions within this network.
This upgrade will also make it possible for the Bitcoin network to provide better smart contracts for the users.
Here are some important points about the Taproot upgrade:
- This upgrade comes from a consensus between Bitcoin stakeholders, which is due to take effect in November 2021.
- It will add more privacy and security to all transactions running in the Bitcoin network.
- It will add various new features not available in the Bitcoin network before.
- The Bitcoin network will also accommodate new types of transactions not available before.
- It’s the first important upgrade after four years, with the previous upgrade done in 2017.
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The Features Expected to Come after Taproot Upgrade
There are various new features you can expect to get added with the Taproot upgrade.
These are the new features in the Bitcoin network you can use starting November 2021:
- The new digital signature system will replace the old one, called Schnorr signatures, which makes the multiple-signature transactions unreadable to add more privacy to each transaction on this network.
- It will add more efficiency for the smart contracts in the Bitcoin network, making it cheaper and also takes less space on the blockchain.
- With better smart contract applications on the Bitcoin network, it can become an alternative DeFi platform, which will rival Ethereum as the leading DeFi platform of today.
Benefits of Taproot Upgrade for the Users
With all the planned features being added to the Bitcoin blockchain network, what are the benefits the users will get from this upgrade? The Taproot upgrade promises more privacy and security for all users when they conduct transactions in the Bitcoin network.
It will also give the users more options to use the network, such as by participating in more secure smart contracts as opposed to just using it for regular trading.
With the Taproot upgrade, you can also have more privacy when conducting transactions with multi signatures, as it will be much less distinguishable from the mono-signature transactions.
This means better privacy and security for the users, preventing any hackers from prying into their transaction signature information.
You’ve learned all you need to know about Bitcoin Taproot Upgrade for now. There are plenty of new and exciting features you can expect to use in the coming upgrade of the Bitcoin network. So, are you excited about this Taproot upgrade? Let us know.