Bitcoins Soft Fork Taproot What Does It Bring?

With bitcoin hitting some fresh new highs many people are starting to focus in on what might be causing the rally across the board. That rally most likely in part has to do with a soft Fork bitcoin will be performing soon that comes by the name of Taproot.

When Will Taproot soft for go live?

Taproot is currently set to go live on the network and activated with 90% support from miners within the next 6 days. As long as the majority of miners lock in and support this update it will take hold and right now that seems to be the case as this softfork only aims to offer up more benefits and capabilities of the blockchain.

The one thing to watch out for however is with any adjustment to the blockchain it does open up the possibilities for missed issues and possible loopholes that could effect the blockchain.

What Does Taproot Do?

Taproot is set to push updates to the bitcoin blockchain offering up more privacy, efficiency and the big one... smart contract capabilities. This means no more needed to wrap you bitcoin in another token for defi projects.

This also opens bitcoin up to being able to have it's own NFTs. What will be interesting however is how the network handles it and if anything in terms of this will be upgraded offering up lower fees and more transaction throughput.

The Tech

MAST or Merkelized Abstract Syntax Tree is one of the updates that will be going live. This update allows for the sender and receiver to sign off on the transaction together.

Schnorr Signature provides bitcoin the abilities for multi signatures from a single transaction.

Most of the time these things are already priced into a cryptocurrency. However with how Bitcoin is the leader it will be interesting to see if the rally holds because of this and future increases due to the new applications that this allows bitcoin. It will be an interesting end of the year to watch bitcoin and how this soft fork effects it in the short months ahead.

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