Taproot activation preview article to understand what Bitcoiner should do

What happens when Taproot is activated?

Less than two weeks after the publication of this article, Taproot will be activated on the Bitcoin network when the block height reaches 709,632 . We already know what to expect, and now, we need to understand some of the possibilities. Existing failure modes.

The best (and most likely) outcome is that everything goes smoothly. Nothing that happens should be visible to ordinary users. Only those who carefully monitor their nodes and who try to create Taproot transactions can notice anything. When the block height reaches 709,631, almost all full nodes we know will execute the same consensus rules. After one block, nodes running Bitcoin Core 0.21.1, 22.0 or related versions will enforce the earlier version of the software. Additional Taproot rules.

A risk that this brings is that early and later versions of the node software will accept different blocks. This happened as early as the BIP66 soft fork activation in 2015, which resulted in 6 blocks at a time. Chain splits, and multiple shorter chain splits.

Taproot activation preview article to understand what Bitcoiner should do

In order to prevent the problem from recurring, engineers have invested a lot of effort. Only when miners deliberately mine an invalid Taproot block, or disable security measures hard-coded into Bitcoin Core and related node software, Taproot will have similar problems.

Specifically, to create a chain split, miners need to create or accept a transaction that is spent from Taproot output (Segregated Witness v1 output) without following the Taproot rules. If miners do this, they will lose at least 6.25 BTC (approximately US$400,000) when the economic consensus of Bitcoin node operators rejects Taproot invalid blocks .

Without creating invalid blocks, we cannot be sure what these node operators will do (nodes can operate completely privately), but according to data from bitnodes.io/nodes/, perhaps more than 50% of node operators are running The Taproot executable version of Bitcoin Core may be enough to ensure that any miner who creates an invalid Taproot block will see that its block will be rejected by the network.

Although unlikely, in theory, a temporary chain split is still possible, and we should be able to monitor it using services such as ForkMonitor.info or getchaintipsRPC in Bitcoin Core . If this happens, the lightweight client may receive an incorrect confirmation. Although it is theoretically possible to get 6 confirmations, just like the chain split in 2015, this means that the miners lost nearly 2.5 million U.S. dollars (compared to about 50,000 U.S. dollars in 2015). We hope that with such a large potential loss, the miners will actually implement the Taproot rule.

In almost any failure situation we can imagine, a simple but effective temporary response is to increase your confirmation limit. If you usually wait for 6 confirmations before accepting payment, you can increase the number of confirmations to 30 to wait until the problem is resolved.

For users and services who are confident that the economic consensus of full node operators will implement the Taproot rules, a simpler solution is to obtain relevant transaction confirmation information only from Bitcoin Core 0.21.1 or higher (or a compatible alternative node implementation).

We hope that Taproot activation can proceed smoothly, but we do encourage transaction operators and anyone who accepts large transactions near block 709,632 to upgrade their nodes, or plan to temporarily increase the number of confirmations when there are any signs of problems.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/taproot-activation-preview-article-to-understand-what-bitcoiner-should-do/
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