Bitcoin’s Privacy Update Schnorr/Taproot Reaches a New Milestone
- One of Bitcoin’s biggest upgrades that will improve the privacy of the network has been published on the GitHub as BIP 340, 341, and 342
One of Bitcoin’s largest to date upgrades that would bring privacy and scalability to the world’s biggest network has passed a new milestone.
Earlier this week, a BitcoinCore contributor, Pieter Wuille published the update Taproot as the Bitcoin Improvement Proposal. A pull request, however, doesn’t mean it is official rather that it is now ready for developers to take a look and for it to get accepted into the ecosystem.
What’s most interesting is that because Bitcoin isn’t controlled by a single entity, major changes like these have to be agreed by everyone in order for it to be implemented.
Bitcoin Core contributor Anthony Towns conducted a review group for developers to assess the BIPs and submit their comments and suggestions. Towns said:
“This is a way to make sure more people understand the proposal as early as possible.”
16 of the developers submitted their feedback and everyone approved of the changes. Jake Chervinky, General Counsel at Compound Finance pointed out:
“Schnorr/Taproot is not only a significant upgrade for Bitcoin, but also an important data point for the ongoing study of Bitcoin's governance model.”
The Schnorr/Taprioot proposal is published on GitHub as BIP 340, 341, and 342. Schnorr is a cryptographic signature scheme to prove the ownership of BTC. It eliminates the need for a multi-signature scheme by combining the signatures of all the transaction inputs into one.
In comparison to traditional ECDSA signature, these signatures are easily verifiable and offer a higher degree of flexibility and robustness.
Using Schnorr, Taproot strengthen privacy by adding smart contract-like capabilities to Bitcoin. This technology makes Bitcoin transactions look exactly the same on a blockchain explorer, hence boosting Bitcoin’s privacy.