ASSAM (CoinChapter.com) —After the SegWit upgrade in 2017, the Bitcoin Taproot upgrade went live on the Bitcoin (BTC) network after 90% consensus among the nodes. The new upgrade will enhance the smart contract support of the Bitcoin network, followed by an improvement in the privacy features.
The new upgrade went live at block 709,632, 5:15 UTC on Sunday, Nov 14, accumulating the attention of BTC enthusiasts. On the other hand, Bitcoin opened the Sunday candle at $64,380 and reached a daily high of $65,550.
After the SEC’s rejection of VanEck BTC spot ETF, BTC dropped below $64,000. However, the Taproot update’s bullish sentiment ended this bearish drop, as BTC maintained its position above $64,000.
Bitcoin Taproot upgrade to change the game
The taproot will integrate the MAST and Schnorr Signatures into the network. MAST stands for Merkelized Abstract Syntax Tree, which will replace the pay to script hash (P2SH). The P2SH is putting a heavy load on the Bitcoin network and diminishes the privacy features.
For every transaction, the P2SH requires to visit every condition related to the transaction. A transaction might’ve used some of these conditions, but due to P2SH, the data cost of the network increases. The MAST will reduce the data cost by only visiting fulfilled conditions, also boosting the speed of confirming transactions.
On the other hand, Schnorr Signatures will condense the multisig transactions initiated by complex protocols. As a result, regular and multisig transactions won’t be distinguishable from the wallet address, increasing the privacy of the Bitcoin transactions.
The composability of smart contracts on the Bitcoin network will improve with the Taproot update. The decrease in the number of conditions required to visit while completing a transaction will make it easier to compose smart contracts on the network.
BTC looking to rule the market
Known for their bullish stance on Ethereum, investors like Lark Davis have always pointed out Bitcoin’s smart contract composability and Ethereum 2.0’s significance. However, with the Taproot upgrade, Bitcoin jumped in to show why its market dominance is 43%, with a capitalization of $1.3 trillion.
Bitcoin looks to rival Cardano, Solana, Ethereum, and other major DeFi projects with lower fees and smart contract support.
However, the results of the upgrade will take their time to shine. The wallet creators will need to develop libraries to support the update. In the coming years, the Taproot upgrade will prove its worth to Bitcoin enthusiasts.