A few days ago Bitcoin locked in a Taproot upgrade and will activate in November, the most important upgrade, or soft fork, for Bitcoin in recent years.
However, several unprofessional reports from overseas media have misunderstood Taproot – that it will allow the Bitcoin mainnet to directly deploy smart contracts like Ether – and this misunderstanding has appeared on the Chinese Internet as a credible source.
This article provides an in-depth and detailed overview of this Taproot upgrade.
What is Taproot?
Bitcoin is updated every so often, these updates are often referred to as soft forks, and the latest upgrade is named Taproot.
Taproot is capable of improving Bitcoin’s privacy and has significant enhancements to many complex features of transactions, such as time-locked issuance, multiple signature requirements, and more.
Without Taproot, anyone can detect transactions that use these complex features, and the Taproot upgrade makes it possible to “hide the cloak”.
This is a huge boon for Bitcoin privacy advocates.
In fact Taproot can completely hide traces of Bitcoin scripts running. For example, you can use Taproot to pay for bitcoins on the Lightning Network, either through peer-to-peer transactions or through complex smart contract channels.
It is important to note that this does not achieve privacy by changing the wallet address of the original sender and the final recipient, but does.
Taproot was originally announced by Bitcoin Core developer Greg Maxwell in January 2018.
Taproot is expected to carry out an upgrade along with another signature called Schnorr – which not only makes Taproot’s implementation possible, but also enables the long-awaited aggregated signature feature.
While Bitcoin Improvement Proposals (BIPs) are design documents that introduce new features and information to Bitcoin, the Taproot upgrade is a compilation of three BIPs that
For Taproot, the three BIPs are Schnorr Signature (BIP 340), Taproot (BIP 341), and Tapscript (BIP 342).
These three upgrades are called Taproot upgrades, collectively known as BIP Taproot, and bring a more efficient, flexible, and private method of transmission to Bitcoin.
BIP 340 – Schnorr Signature
(Space saving – reduced transaction fees)
This protocol allows the use of Schnorr signatures in the Bitcoin network.
Schnorr signatures are a cryptographic digital signature scheme developed by German mathematician and cryptographer Claus Schnorr, mainly known for the ease and efficiency of generating short signatures.
One of the main advantages of Schnorr signatures is their ability to capture multiple keys and generate unique signatures in complex Bitcoin transactions.
This means that signatures from multiple parties involved in a transaction can be “aggregated” into a single Schnorr signature, hence the term aggregated signature.
BIP 340 will therefore bring some advantages to Bitcoin, such as higher privacy, lower fees, and more flexible multiple signatures.
BIP 341 – Taproot
(More Flexible Bitcoin)
In short, this protocol basically explains how bitcoin will fit into Schnorr signatures, and the flexible functionality of bitcoin comes from the key aggregation feature of Schnorr.
When bitcoins are sent to the P2TR output, they are locked to a public key called Q. The public key Q is actually an aggregation of the public key P and a public key formed by multiple Merkle roots of other script types.
This provides the user with the ability to choose between a complex arbitrary script and a simple pay-to-public key when spending (not receiving).
In addition, key aggregation makes all Taproot outputs look similar.
So since multi-signature outputs, single-signature outputs and other complex smart contracts all look the same on the blockchain, many blockchain analytics will not be available, thus preserving privacy for all Taproot users.
BIP 342 – Tapscript
To actually implement P2TR, BIP 342 adds and updates several opcodes that are part of the machine language instructions that specify the operation to be performed.
These new scripts help verify Taproot overhead and Schnorr signatures and are collectively referred to as Tapscript.
This is to maximize the flexibility of the P2TR overhead and to facilitate future upgrades.
How do Taproot upgrades benefit Bitcoin?
Taproot upgrades are beneficial to both Taproot-adopting and non-Taproot-adopting bitcoin users.
The introduction of Schnorr signatures and key aggregation for all Taproot users includes, in addition to enhanced privacy, other potential benefits including
Reducing the amount of data transferred and stored on the blockchain.
Blocks contain more transactions (increasing TPS).
Lower transaction fees
Schnorr signatures also eliminate any signature malleability that may exist in ECDSA signatures –
Signature malleability means that it is technically possible to change the signature before confirming the transaction.
This will make it appear that the transaction never happened, which is the notorious double-spend problem Bitcoin faces (potentially breaking the integrity of the distributed ledger), thus improving the overall security of the Bitcoin network.
When is the Taproot upgrade coming?
Due to the decentralized nature of Bitcoin, any major changes to the Bitcoin network would require coordination of a global user base to make significant changes to its code.
And, of course, additional coordination among pledgers is required to deploy these changes.
Taproot has been called Bitcoin’s most ambitious upgrade to date. Miners can support it by adding special data (called signal bits) to the mined blocks to table –
If 90% of the blocks mined include Taproot signal bits, the upgrade will be locked in for activation this November.
Two days ago Taproot’s mining pool count exceeded 90% at 98.95%, which means a Taproot upgrade is definitely coming, which would further strengthen Bitcoin’s position as a global clearing network and store of value.
But bitcoin and ethereum have been two species since the beginning.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/taproot-will-make-bitcoin-deployable-smart-contracts-what-exactly-is-the-misunderstood-taproot/
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