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Highlights
- Taproot, a much-anticipated upgrade to Bitcoin, went live at block 709,632 on 14 November 2021.
- Bitcoin, despite its best efforts to appear modern, failed to capture the attention of investors.
Assume trying a trendy makeover to keep up with the younger crowd. But what if your new look fails to catch anyone's attention? It's dreadful, isn't it? Bitcoin has gone through a similar phase, and its modernisation has failed to fuel its prospects better.
Nonetheless, in a variety of ways, Taproot will have an influence on the blockchain.
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What are the most significant changes introduced by Taproot's upgrade?
Taproot, a much-anticipated upgrade to Bitcoin, went live at block 709,632 on Sunday, 14 November. However, Bitcoin, despite its best efforts to appear modern, failed to capture the attention of investors. The world's oldest crypto has been going through a rough patch for last few days. The price of BTC kept on declining after hitting an all-time high of ~US$69,000 after Taproot's integration.
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Smart contracts
Taproot's most major modification is smart contracts, which make them less expensive and take up less space on the blockchain.
Smart contracts are code-based digital agreements that are recorded on the blockchain. They are critical in the operation of nonfungible tokens (NFTs) and decentralised finance.
Privacy
The Taproot upgrade attempts to improve transaction privacy. It will implement Schnorr signatures, which will make bitcoin transactions more cost-effective, efficient, and secure. Taproot will, above all, make it easier for bitcoin to execute smart contracts on the blockchain.
Schnorr signatures will eventually enable multi-signature transactions that are distinct from basic transactions. It means that addresses involved in multi-signature transactions will have more anonymity and privacy.
Transactions are less expensive
For multi-signature transactions, Schnorr signatures would cut down on the quantity of data required. Due to this, transactions will be less expensive to process, resulting in decreased transaction costs.
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Final thoughts
The Taproot upgrade is a blessing for Bitcoin and lays the groundwork for the next round of innovation in the Bitcoin protocol. However, Bitcoin's fate cannot be predicted. While it is the crypto king, the crypto market's younger coins, such as Shiba Inu, Dogecoin, Cardano, Ethereum, Polkadot, and others, are equally gaining popularity among investors as a result of the adoption of modern technology and community support.
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