Taproot is on its way. The long-awaited Bitcoin (BTC) upgrade has been
confirmed, after it passed the minimum threshold of 90% miner approval
in mid-June, meaning that it will be implemented in November.To get more
news about
ENJ, you can visit wikibit.com official website.
While the core features of Taproot — increased privacy and enhanced
wallet scripting — are fairly well-known, what will the upgrade's impact
be on Bitcoin in a wider sense？ Will it attract more adoption, take
users away from privacy coins, or even incur the wrath of regulators？
The answers to these questions are fairly mixed, according to a range
of Bitcoin developers. Because while Taproots features might attract
greater use of Bitcoin, it may also take a while before applications and
Bitcoin-based services make full use of them, with protocols having to
be built on top of Bitcoin before cost-saving and privacy features have a
significant impact.
What Taproot does for Bitcoin
As a recap, here are the three main benefits Taproot will bring to Bitcoin:
Reduced fees for multisig/complex transactions: Taproot will
significantly reduce the data needed for processing complex
transactions, such as those involving multiple signatures or
time-locking. This is great for anyone who needs greater security.
Increased privacy: in combination with Schnorr signatures, Taproot
will let users mix transactions made by complex (e.g. multisig or
time-locking) wallets with those using only single signatures. It will
therefore let anyone concerned about revealing their use of multisig to
hide such use.
Enhanced wallet functionality: Taproot will let developers set more
complex conditions for wallets. For example, it will let developers
create multisig wallets which start off by requiring 3 out of 5
signatures to confirm transactions, but which can degrade over a set
period of time to require only 2 out of 5 signatures. This is ideal if
you anticipate the possibility of losing any of your private keys.
These are the core features offered by Taproot. And pretty much every
developer Cryptonews.com spoke with agreed that such features will be
widely used, but not immediately.
“I expect the features enabled by Taproot will be used very widely
once downstream applications integrate them, as they will help the
applications provide valuable features, procure competitive advantage
and lower costs,” said one Bitcoin developer, who asked to remain
anonymous.
Other developers agree that we‘ll need to wait for applications,
wallets and protocols to implement Taproot before its beneficial effects
will fully make themselves known. For developer and BTC wallet service
BTCPay Server founder Nicolas Dorier, it’s unlikely that adoption for
Taproot will be as wide as it was for SegWit, particularly for users
requiring only single-signature payments.
“It will be widely used for other protocols built on top of Bitcoin
(like Lightning). On-chain, Taproot makes the use of these protocols
indistinguishable from other protocols. Multisig benefits from such
kinds of enhancement will follow for sure, but will current multisig
wallets move to Taproot？,” he asked, adding that the answer to this
question is not clear yet.
“Taking advantage of the privacy upside requires some more complex
protocol (musig2) to be able to work,” he said, noting that it might not
be worth the trouble for current multisig wallets.
For Bitcoin author/educator/developer Jimmy Song, multisig wallets
will gradually integrate Taproot, but again not immediately.
“Not much at first, but much more over time. There is demand for good
backup solutions, so yes, I think wallets will be integrating them,” he
told Cryptonews.com.
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