Taproot is an upgrade on the bitcoin network technology. This is just another reminder that bitcoin is a technology that continues to evolve every year. Unlike gold which is just a store of value.
What is Taproot?
Taproot is a bitcoin protocol upgrade that is expected to make smart contracts more private and locked in.
The last bitcoin upgrade was in 2017 which was the segwit update. This gave a fork called bitcoin cash
There are lots of specific complex transaction going on, on the bitcoin blockchain network, taproot with its technology is expected to enhance privacy while simultaneously lowering the amount of data needed to create them which will there by reduce transactions cost. We all know transaction cost is high in bitcoin transactions as the asset becomes more popular. With lower fees being part of the upgrade, bitcoin transactions will be expected to cheaper and faster in the future. This upgrade will also increase privacy. Taproot upgrade is being supported by 55% of the bitcoin network.
This idea was birthed from Gregory Maxwell who is a developer for bitcoin core. Bitcoin core is a software that gives individuals access to interact with the blockchain. This means that by downloading the software, you can take part in the validating transactions on the bitcoin blockchain.
Taproot is set to be launched by November 2021