Bitcoin is the topmost cryptocurrency in the world with $64K per unit price and the highest market cap. The main reason for this hype around the flagship crypto is it is as nearest to the concept of decentralization as possible. Due to this quality, Bitcoin is often regarded as one of the most useful hedges of value. However, many critics claim that technology is going to become redundant shortly.
Despite being fully decentralized, it is possible to implement an upgrade on the BTC network if the majority of the stakeholders vote in favor of the proposition. The first and most important upgrade called SegWit was implemented on this network in 2018. Now, a new upgrade called Taproot is implemented on Bitcoin blockchain.
One of the biggest limitations attached to the Bitcoin network is the POW consensus model that requires a lot of energy input and leaves behind a massive carbon footprint. For traditional investors, it means that working with Bitcoin requires a huge investment and maintenance input. The first upgrade on the network called SegWit allowed the network to increase its malleability and scalability features. The highlight of this upgrade resulted in the form of Bitcoin Lightning Network.
Taproot Upgrade Brings New Features
The addition of the Taproot upgrade is directed towards making the network more compatible with the smart contracts technology and will create greater security for the investors. These changes are going to happen with the addition of MAST and Schnorr Signatures. The MAST signature will replace the script hash P2SH with Merkle root. This change will reduce the addition of unnecessary storage of information during every transaction.
Igneus Terrene is the head of communications at a major crypto derivatives exchange called ByBit. Sharing his thoughts on the matter of Taproot, he claimed that the trio of Schnorr, MAST, and TapScript is going to allow the Bitcoin network to become more secure and less traceable. Recently, a networking mogul from Egypt told the media that he is not interested in investing in Bitcoin as it is vulnerable to getting hacked.
Without the Taproot upgrade, hackers can track the transaction details and collect more data from the end-users. Meanwhile, the Schnorr signature will unify the multisig transactions with their regular counterparts. The CTO of Gate.io, Marie Tatibouet mentioned that the improvement of the smart contract applied by the Taproot upgrade is not going to make Bitcoin as efficient as Ethereum in the use of this technology.