A little less than a month ago, Bitcoin miners around the world signaled enough positive signals to start adopting Taproot around November 12 of this year. For those following the price of Bitcoin and perhaps sitting on the sidelines, this upgrade isn’t just a monster, it lays the foundation for the network’s continued development. That it’s the first upgrade in four years is a positive sign as not only is the Bitcoin community decentralized, there may be a higher threshold than a congressional law to upgrade the network.
But the secrets behind Taproot, with the capability behind better network efficiency and greater data protection for transactions, could unleash a much higher price tag that could hit an “all-time high” of over $ 100,000. The coincidence that Taproot gets to and where the regulation takes place should also add value to the Bitcoin offering.
This article takes a look at some of the very high-level technologies used to explain Taproot in layman’s terms. Explanations and further details are supplemented by two interviews. To begin the tech path, let’s take a look at a quote that first introduced Taproot. “The special case of a top-level ‘threshold signature OR arbitrary condition’ can be made indistinguishable from a normal one-party signature without any overhead with a special delegating CHECKSIG that I call taproot,” said Gregory Maxwell introduction of the concept of Taproot in 2018.
Taproot uses two types of technologies that we will have one of our two experts explain in a moment, but first I spoke to D ++ as it is about the upside potential of the Bitcoin price. Using her pseudonym as her name as the data protection officer, D ++ is a revolutionary Cypherpunk and Bitcoin maximalist on her Twitter feed, offering her view of the possible price implications of Taproot.
“Taproot makes Bitcoin better … but the price isn’t built in,” says D ++, who sees the potential for greater institutional acceptance by upgrading the network. “Celebration of this amazing technology; Bitcoin scripts and smart contracts, multisigs and Lightning, as they all look the same, offer you additional privacy.
Nadav Cohen, Security Engineer at Suredbits, is also a regular at the clubhouse and usually explains very complicated Bitcoin and Lightning coding and technical aspects that the rest of the audience usually pick up from either a base layer or an additional level of technical understanding of how Bitcoin works.
At Taproot, a Merkle Abstract Syntax Tree (MAST) hashes all of the various contractual conditions; However, the use of Schnoor signatures enables the transactions carried out to be private. To further explain, Schnoor signatures are a different form of digital signature than what drove the network from the start: Elliptic Curve Digital Signature Algorithm (ECDSA).
Taproot is also critical in that the Bitcoin community implemented this change as a soft fork, which means the changes are backwards compatible. “The Bitcoin network is conservative and we are not making any backward incompatible changes … it could be argued that it is not right to deny Satoshi his coins with a backward incompatible change,” says Nadav Kohen, security engineer at Suredbits.
Kohen is pleased that Taproot provides a foundation on which “… the improvements lay the groundwork for potential future upgrades that can further improve efficiency, privacy and fungibility.” In the meantime, one person who worked at the Clubhouse is called ‘D ++’ and has participated in many clubhouse chats discussing both Bitcoin and Lightning networks, for some time to explain their enthusiasm for Taproot to me.
D ++ noted that “reaching consensus on upgrading Bitcoin is very difficult. In 2017 there were … the “blockchain wars” … power struggles. Confusion about how to update Bitcoin in the future. ”However, this time D ++ points out that there is a concerted effort:“ Everyone wants Taproot to be updated in the community. ”
Taproot is now locked and will be released around November 12th. What to expect D ++ describes the upgrades as “… cool: Schnoor signatures, Taproot, Merkle Abstract Syntax Trees, means ‘privacy’ in Bitcoin – not private, but still pseudonymous and is still in a public ledger.” D ++ noted that Taproot only obscures details so that Multisig is not visible with Taproot.