Bitcoin Taproot upgrade has received 53.71% arithmetic support, activation to come as expected?

Taproot is expected to be the largest bitcoin upgrade since 2017.

Bitcoin Taproot upgrade has received 53.71% arithmetic support, activation to come as expected?

What is Taproot? It is a proposed protocol upgrade designed to improve Bitcoin’s privacy and flexibility, and promises to be the biggest Bitcoin upgrade since 2017. 2017’s SegWit upgrade led to a hard fork of the network, where a blockchain split into two separate blockchains. While Taproot is not as controversial, it is still worth understanding how it will change the world’s largest blockchain network.

What problem does Taproot aim to solve?
The Bitcoin blockchain is made up of computer code. So when you send a transaction on it, the “token” is actually associated with a script. These instructions tell the blockchain what you can do with them. Typically, this means using a private key to provide a signature and prove that you can use them.

However, one can perform more complex transactions (such as smart contracts, or code that defines an agreement between the sender and receiver), such as requiring multiple signatures before a token can be used, or specifying a waiting period known as a “time lock”.

When said currency is eventually used, these scripts become publicly available on the Bitcoin blockchain, adding a large amount of data to the already unwieldy blockchain while potentially revealing some details about the people involved in the transaction. As a result, this makes the job of blockchain tracking companies such as CipherTrace and Chainalysis, and the government agencies to which these companies provide data, much easier.

What will Taproot do?
With Taproot, all parties in a transaction can cooperate by combining multiple public keys to create a new public key, and with the help of Schnorr signatures, combining their signatures to create a new signature. Making an otherwise complex transaction look like a standard, person-to-person transaction.

What are the benefits?

For these specific types of complex transactions, Taproot will enhance privacy while reducing the amount of data required for transactions, thereby reducing transaction costs that are near all-time highs due to Bitcoin’s growing popularity.

In addition, the privacy benefits will extend to applications that use time-locked contracts, such as CoinSwap, which mixes bitcoin transactions to obfuscate the origin and destination of bitcoin. The same applies to the Lightning Network, a second layer network that binds transactions off-chain. Thanks to Taproot, these applications will become more and more private.

As CoinSwap’s founder says, “It is believed that this architecture will provide the maximum possible anonymity set for fixed-party smart contracts, making them seem like the easiest way to pay.”

Who came up with this?

Taproot was proposed in 2018 by Gregory Maxwell, a developer of Bitcoin Core and formerly the chief technology officer of Blockstream. Bitcoin Core is an open source software created by Blockstream. It is currently the primary software client for Bitcoin, and its allows individuals to interact with the blockchain, enabling users to participate in verifying transactions on the Bitcoin blockchain.

What is the current status of Taproot?
Bitcoin miners – the people who mint new blocks on the network – must “signal” that they support this upgrade within a two-week period. (Bitcoin’s “difficulty” is adjusted every 2016 blocks for about two weeks, depending on how quickly miners create new blocks; the goal is to generate a new block every 10 minutes on average.)

For the upgrade to run smoothly, 90% of the blocks mined during this period must contain data from miners, i.e. “signal bits”. If this threshold is not met, miners will be given the opportunity to do so for each subsequent difficulty cycle until August 11. Once accepted, the Taproot upgrade will be activated in November.

According to data, 53.71% of the mining pool’s computing power currently supports the Bitcoin Taproot upgrade. However, due to technical issues, many miners have not yet signaled their support, so the upgrade will not take place during the current difficulty cycle.

Bitcoin Taproot upgrade has received 53.71% arithmetic support, activation to come as expected?

Why must it reach 90%?
Bitcoin is a global project with millions of stakeholders, including developers, miners, institutions and individuals. As such, substantial change requires broad buy-in.

The standard process for gaining support is to submit Bitcoin Improvement Proposals (BIPs). BIPs include code changes to the Bitcoin protocol and can be proposed by anyone.

Some want to move forward with Bitcoin Improvement Proposal BIP 9, which makes upgrades dependent on miner support. Others support BIP 8, which would push for an upgrade with or without miner support.

In a public meeting, community members ultimately decided to adopt a proposal called the Speedy Trial, which gives miners three months to signal the 90% threshold needed for activation.

Previously, Bitcoin Core developer Luke Dashjr caused quite a stir when he argued against the “Speedy Trial”, insisting that consensus had already been reached on BIP 8 and creating client software that would allow node operators to activate Taproot early.

In response, Bitcoin developer Matt Corallo called it “an unaudited Bitcoin core fork with consensus divergence rules”.

Who doesn’t support it?
Prism-gate revealer Edward Snowden has reportedly spoken out against the Taproot upgrade, saying it could actually make Bitcoin’s privacy worse. Of course, most bitcoin developers don’t agree with that statement.

In addition, most miners still haven’t signaled their support, but the three-month activation window offers multiple opportunities to make their decision.

Overall, however, the proposal seems quite popular, as it makes Bitcoin more like digital cash and has few obvious drawbacks.

When was the last major update to Bitcoin?
The Segregated Witness (SegWit) update in 2017 was the last major upgrade to the Bitcoin network. The purpose of that update was to remove some signature data from transactions in order to make more room within the block for transactions. The Bitcoin blockchain will become faster as a result.

However, this is not enough according to some people who see Bitcoin as an investment vehicle rather than a usable currency. They argue that Bitcoin needs a larger block size to allow it to be traded as quickly and cheaply as cash. As a result, this faction eventually initiated a hard fork, resulting in Bitcoin Cash (BCH).

In contrast, Taproot apparently has far fewer opponents, and its main conflict is how to make it a reality.

Posted by:CoinYuppie,Reprinted with attribution to:
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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