Taproot, the update of the Bitcoin network, is on the way

The last update of the Bitcoin network dates back to August 2017 when Segregated Witness or SegWit was implemented which led to the launch of the Lighting Network in order to increase scalability, efficiency and privacy. The update will take place with the validation of block 709.632 and will be a Soft Fork, so no new currency will be issued and there will be no new blockchain.

Taproot will introduce MAST (Merkelized Abstract Syntax Tree) which will replace P2SH (pay to script hash) a more targeted control mechanism so that transactions are only allowed when all requirements are met. P2SH allows other users to see the conditions imposed, while MAST hides all conditions except those that are met when transactions are processed.

Taproot will also implement Schnorr Signature, an algorithm that allows users to aggregate multiple signatures into one for a single transaction, reducing the differences between regular and multisig transactions. On the website Taproot.Watch it is possible to monitor the countdown to the update, as well as to deepen some details of the Soft Fork.

The attention on Bitcoin is really pressing in these months, defined as digital gold, but many great cryptocurrency enthusiasts would like a coin that can really meet the requirements for which it was created: a peer to peer electronic trading currency. Twitter CEO Jack Dorsey has launched a group of developers who work precisely to this goal, creating a scalable and secure network, and has encouraged the use of LN to be able, for example, to allow the sending of BTC tips on Twitter.

Traffic on the Bitcoin network is growing exponentially at the same rate as its popularity increases. Compared to the beginning of 2020, the dollar volume transferred on average to the network has increased by 40 times, also thanks to the adoption of Bitcoin in El Salvador and other countries. Willy Woo, on-chain analyst, commented in this regard:

The Bitcoin network is currently processing $ 190,000 per second. The Visa network processes around $ 130,000 for US users, while MasterCard $ 55,000

The network traffic will be even more intense in the near future so it is necessary to continuously update the network so that it can really become less congested and cheaper for fees. Bitcoin cannot just stop being the substitute for physical gold, its potential goes far beyond this limit. Satoshi Nakamoto created the blockchian to allow anyone, regardless of distance and sophisticated technology, to be connected to the world not only via social networks but above all economically.

The freedom of being able to manage one's capital without someone being able to control it is the greatest revolution of the new millennium

Posted Using LeoFinance ^Beta