Taproot starts signaling
A major upgrade of crypto assets (virtual currency) Bitcoin (BTC) “Taproot” has taken a step toward implementation.
The latest version (0.21.1) of the network-based software “Bitcoin Core”, which includes the Taproot activation code, was released on the 1st. BTC miners can express their support for the Taproot implementation by updating to this latest version and including specific data called “signal bits” in the blocks they mine.
Consensus building for decentralized networks like Bitcoin usually takes a very long time, but this time we conducted a Speedy Trial with an upper limit of 3 months and a minor Taproot. Measure the approval rating.
If a minor who accounts for 90% of Bitcoin’s hash rate updates to the latest version during the period, Taproot will be “locked in” and full-scale implementation on the network will begin at block height 709,632 (around November this year). ..
On the other hand, if the minor approval rating does not reach 90% within 3 months, other methods of activating Taproot will be implemented, but by mid-August, whether or not to move from lock-in to upgrade. The answer will come out.
Relation:Bitcoin’s big update “Taproot” 90% of mining pools agree
Currently, Taproot is activated by F2Pool (hash rate share: 16.82%), FoundryUSA (5%) and SlushPool (3.64%), with 10% of blocks containing supportive signals. You can check the activation status from Taproot activation.
Long-awaited update: Taproot
Taproot is a major update since SegWit was implemented. A solution that combines the advantages of Schnoor signature, which is a cryptographic technology for signing transactions, and MAST (Merkelized Abstract Syntax Tree), which enhances smart contract functions, while enhancing network privacy functions and processing. Expected to improve speed.
In terms of privacy, anonymity is improved because various transactions (including smart contracts) on the blockchain look uniform and cannot be distinguished. Also, regarding signatures, it has been said that since it is possible to combine the signatures of transactions of a single recipient, the data size in the block can be reduced and the scalability of the entire network can be improved.
Furthermore, it has been pointed out that the effect of promoting the use of multisig will lead to improved security.
For the nodes of the Bitcoin network, it is only necessary to verify one digital signature, which reduces the burden of node operation. Furthermore, the Schnoor signature function allows all signatures in the block to be added and verified at once, which has the advantage of leading to optimization of verification.
It is expected that such efficiency improvement will reduce the usage cost of multisig and the usage cost of Lightning Network, which is the second layer solution of Bitcoin.
Bitcoin is of interest as a means of storing value, but after the implementation of Taproot, it is expected that there will be significant improvements in the payment aspect, which is the exchange of value.
I would like to keep an eye on future developments as to whether the adoption rate of Taproot by miners exceeds the 90% range.
Reference: Bitcoin Core
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