Taproot is one of the most important updates to the Bitcoin network and could have implications for blockchain, the market’s most popular cryptocurrency. Its most important benefits include enhancing the privacy, scalability and security of the Bitcoin blockchain network.
After updating Segwit in the Bitcoin blockchain network, Tap Root can be considered the most important and effective update in the network structure.
Bitcoin Tap Root was successfully launched on November 14 (8:30 a.m. Tehran time), the first major Bitcoin upgrade in four years. This upgrade increases the privacy and efficiency of transactions and provides the potential to use smart contracts.
The Bitcoin network voted with 90% consensus to activate the soft branch of Teprot. The purpose of this upgrade is to optimize the scripting capabilities and privacy of the Bitcoin network through the concept of “Merkel Abstract Syntax Tree” or MAST. Bitcoin Tap Root is actually the first major update to the Bitcoin network since 2017 and the launch of the Lightning and SegWit networks.
In fact, the goal of Tap Root is to improve the privacy and security of Bitcoin, and from this point of view, it can affect the market. Given that Bitcoin is the most popular cryptocurrency in the market, improving its performance is important and can not only affect the market value of Bitcoin, but also the market value of other digital currencies.
Also, updating the bitcoin tap root is one of the important issues that can reduce privacy concerns and actually help improve network performance. In addition to anonymity, Tap Root helps to distinguish complex transactions that require multiple signatures from simple transactions that are unrecognizable within networks.
History of Tap Root
In 2018, “Greg Maxwell” introduced the initial idea of Tap Root. He, who was the developer of the Bitcoin Core, unveiled the idea. Pieter Wuille pursued the idea in 2020, and Tap Root merged with Bitcoin Core.
Greg Maxwell was the first proponent of bitcoin improvement, or BIP, and since then, three bitcoin improvement proposals have been made by Pieter Wuille, Tim Ruffing, and E.P. AJ was introduced.
Benefits of Bitcoin Root Hill
Bitcoin bitcoin root not only affects these popular cryptocurrencies, but can also have other benefits, the most important of which are:
1- Special attention to privacy
As mentioned, the increase in privacy is not limited to the anonymity of bitcoin addresses, but also in various transactions, this anonymity or, in fact, better known as invisible. In fact, Teproot helps to make the origin and destination of the transaction unrecognizable and hidden.
One of the important issues that Tap Root addresses is the limited bitcoin transaction space, which makes scalability a major problem for these cryptocurrencies. Developers can not easily overcome this limitation without compromising bitcoin decentralization, so they are always looking for solutions to make more efficient use of available blockchain space.
3- Reducing commission costs
Another advantage of bitcoin rooting is the reduction of transaction costs, which can also be an attraction for the cryptocurrency market.
4- Improving Bitcoin smart contracts
Another advantage of Tap Root is the greater flexibility in the operation of Bitcoin smart contracts. In fact, complex transactions not only make it easier for users, but also reduce costs.
5- Impact on Lightning network
Tap Root affects the performance of the Lightning network, the second layer that makes bitcoin transactions faster. In fact, tap root makes network transactions cheaper and more private.
6- Increasing security
Another benefit of Tap Root is the increased security of bitcoin transactions while enhancing the speed and power of operations.
7- Increasing the number of transactions
Another advantage of Tep Root is the increase in the number of transactions per block, which increases the TPS rate.
8- Immutability of signatures
With tap root, signatures will not be changed and this security risk will be removed. Signature flexibility means that signatures can be changed before verification, making it appear that no transaction has taken place. Tap root helps keep signatures unchangeable, which again helps increase network security.
Bitcoin Improvement Plan (BIP)
The Bitcoin Improvement Proposal, or “BIP”, is a plan to upgrade and improve the Bitcoin ecosystem. Such designs are usually provided by developers and people with skills and knowledge. When someone has a new idea to upgrade a bitcoin network, they present it in the form of a BIP proposal. The first bitcoin improvement plan was introduced in 2011 as BIP 0001.
There are different types of bitcoin improvement plans and it overshadows different parts of the network. For example, some BIP schemes target the core of the network between Quinn, blocks, and transaction authentication. In such plans, the main bitcoin center and its infrastructure are upgraded. If the project is approved and accepted by a group of developers and in fact people active in this field, the relevant BIP will enter the implementation phase. It should be noted that due to the huge popularity of Bitcoin, providing an improvement plan in the core of the network is not an easy task and not everyone can provide a development plan for it.
Some other types of BIPs are modifications to the general Bitcoin guidelines. For example, the proposal relates to scalability solutions, changes to blocks, and processing protocols. Such schemes can be effective for the overall bitcoin network and are of particular importance.
Some other types of BIPs are related to the Bitcoin network process. These designs do not directly affect the technology and coding or structure of the network, but they are also of particular importance throughout the network.
Tap Root is also one of the plans to improve Bitcoin in terms of improving privacy and network security. The main root of this promotion is Schnorr Signature.
Ashnor’s signature is actually a cryptographic signature project that was first developed by the German mathematician and cryptographer Klaus Ashnor. Ashnor protected his algorithm for years by patenting it, but in 2008 the patent legally expired.
On the other hand, Satoshi Nakamoto, the creator of Bitcoin, proposed an ECDSA signature plan for Bitcoin to replace the Ashnor signature algorithm, in which the user signs a transaction with his private key to confirm sending it elsewhere.
Tap Root is rooted in Ashnor signature upgrades and can actually be a plan to upgrade digital signatures. Each transaction using TapRoot takes advantage of this new digital signature enhancement scheme, adding new features designed to increase the privacy, security, and scalability of bitcoin transactions.
In addition to being simpler and faster than ECDSA, Ashnor signatures have the advantage of being linear, a combination that enhances the privacy of bitcoin transactions and allows smart contracts to be executed cheaper and faster. Tap Root will have many positive consequences for various projects across the ecosystem. For example, multi-signature transactions that require more than one signer group to sign a transaction will be cheaper and will use less data.
Segwit stands for Segregated Witness and stands for Transaction Signature. This address is important for network upgrades and bitcoin issues.
Segway is actually a bitcoin improvement project that is used for implementation problems. The purpose of this soft fork is primarily to increase the capacity of blocks in the blockchain network and to protect the flexibility of transactions.
Sagittarius was applied to the Bitcoin blockchain in August 2017 and was proposed by the Bitcoin Core Developers Team.
With the upgrade of the hilltop, the capacity of the bitcoin blockchain network will increase and conditions will be provided for transactions to be done with more flexibility. Segway addresses are different from regular addresses. Advantages of Segway addresses include lower fees, correction of faulty transactions, and increased block storage capacity. Some digital wallets support sagittarius-type addresses.
What can be expected from Bitcoin Root Tap?
So far, just over half of the known bitcoin nodes show upgrade support. The other nodes actually run older software. This means that they are not yet able to enforce the new tap root rules, or at least not until they are upgraded to Bitcoin Core 21.1. Of course, even in such circumstances, the network will still run well.
Miners that have not been upgraded to new software cannot be successfully extracted on the network. It should be noted, however, that the developers have done a great deal to ensure that the miners had ample opportunity to accelerate. In fact, more than 90% of miners have already announced that they plan to upgrade to the new software, which is why Tap Root was able to launch in June, and this was one of the reasons why, before launching, This issue was postponed for 5 months.
However, activation does not mean that everything is done. Unless their specific Bitcoin wallet supports it, users will not be able to send or receive the new transaction type, and most wallets still do not support this activation. Wallet developers need to write new code for their wallets to allow such transactions.
Doing so may take months or even years for all wallets to board. For example, it took almost two years for the latest relatively large bitcoin upgrade, Segway, to reach 50 percent acceptance.
It goes without saying that while Tap Root allows the use of some more complex items, such as performing private Lightning network transactions that are no different from regular transactions, developers still need to make the previous tools available and implement them separately.
The key thing to keep in mind is that Tap Root enables new enhancements and optimized solutions in the Bitcoin network and provides developers with a wide range of tools to implement their ideas. Some projects to optimize and improve the performance of the Bitcoin network are currently underway, but there is still more work to be done and more ideas and plans should be considered in this area.