The story behind cryptocurrency
28.09.2021
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Cryptocurrency is a modern form of currency that was first launched in 2009. In other…
Taproot – the biggest Bitcoin upgrade in four years
Cryptocurrency took the world by storm in 2009. First out was Bitcoin, but this is something most people know. In the years that followed, several cryptocurrencies appeared, but 13 years later, Bitcoin is still at the top of the list of the most popular cryptocurrencies.
Many cryptocurrencies have been developed as a result of some “hardfork” from Bitcoin. Several times there have been disagreements in one form or another, which has led to forks, which in turn has led developers to take part of Bitcoin’s open source code and create new software:
- Bitcoin Cash (hardfork of Bitcoin).
- Bitcoin Gold (hardfork of Bitcoin).
- Bitcoin SV (hardfork of Bitcoin Cash).
“Hardfork” is often about software upgrades that developers are unable to agree on. One of the arguments for using a cryptocurrency other than Bitcoin has been because they are generally better, but Bitcoin is constantly working to make its network better.
At the end of 2021, it was announced that there would be a new Bitcoin upgrade. This upgrade was highly anticipated and it has been named Taproot. It is the largest Bitcoin upgrade that has been done in four years, but what is this upgrade really about? We will take a closer look at this in this article!
What is Taproot?
Since its inception in 2009, the team behind Bitcoin has been working continuously to make the cryptocurrency better. As a rule, the changes have been so small that they have not been given a name, but Taproot was such a big upgrade that it was only natural to give it a name.
Taproot is a so-called «softfork». It is a term used for a change that has been accepted by the entire network on which Bitcoin is based.
The taproot upgrade is a move that has affected Bitcoin in many ways. We will go into more detail on this along the way in this article.
What is the Taproot upgrade about?
In connection with the Taproot upgrade being activated, Bitcoin comes with a number of promises. In general, this is an upgrade that will make Bitcoin better on several levels, both for Bitcoin’s customers and developers.
Better privacy
Privacy is important in many contexts, and cryptocurrency is no exception. This is one of the key points in the Taproot upgrade. The upgrade will thus lead to better privacy for Bitcoin’s customers.
Efficient transactions
The Bitcoin network has been criticized several times for being slow. This has led many to move away from Bitcoin and stop using it. In our modern world, we do not have time for anything to go late, even if it is only a matter of a few seconds.
The people of today’s world are impatient, and if new technology is to have as much as a tiny chance of being accepted, then it has to be fast. The taproot upgrade also aims to make transactions on the Bitcoin network more efficient.
Use of more advanced smart contracts
In connection with Bitcoin (and cryptocurrency in general) get acquainted with many concepts that would otherwise be foreign. One of these concepts is the concept of smart contracts, which is a technology on which cryptocurrency is based.
The term smart contract is used in connection with the cryptocurrency’s blockchain, and plays an important role in connection with the transactions carried out on the network. In this case, we are talking about the Bitcoin network.
The taproot upgrade increases the network’s potential, and in this way more advanced smart contracts can be run on Bitcoin’s blockchain technology.
Easier for Bitcoin developers
The taproot upgrade not only leads to a better experience for Bitcoin customers. It also leads to a better experience for Bitcoin developers.
As a direct result of the Taproot upgrade, Bitcoin’s developers will have an even better toolbox that they can use when they start the work of expanding the Bitcoin network even more when it becomes relevant to do so at a later date.
What is Taproot really changing?
Thanks to the Taproot upgrade, transactions made on the Bitcoin network will be safer, faster and cheaper. That’s what this upgrade does, if you were to say it in just one sentence. However, we will go a little more in depth on that.
The taproot upgrade introduces something called P2TR on the Bitcoin network. P2TR is an abbreviation for Pay To Taproot, and it is an output that makes it possible to make transactions for both smart contracts and cryptocurrencies without noticing a difference.
But Pay To Taproot does more than that. Previously, Bitcoin used the technology ECDSA, or Elliptic Curve Digital Signature Algorithm. It creates a private key for each bitcoin wallet, so that only the owner of the wallet can use it.
As a result of the Taproot upgrade and Pay To Taproot, the use of Schnorr signatures will be introduced instead. These take up less space, while at the same time having greater potential than the technology that Bitcoin has previously used.
What will the changes do for Bitcoin?
Changes are made to the Bitcoin network regularly , and therefore it can be difficult to get everyone involved as they are often quite small. With the Taproot upgrade, however, the changes are a little bigger and they will lead to the overall experience being significantly better.
The idea behind the Taproot upgrade is simply that the overall user experience will be better for all parties.
It should therefore not matter to what extent you are a customer or developer in connection with Bitcoin. Both parties should have as good an experience as possible, and that is what the Taproot upgrade makes possible.
[etoro]How to get started with Bitcoin
Have you been sitting on the fence and not sure if Bitcoin is the right choice for you, but then all the information about the Taproot upgrade has finally convinced you to give it a try? Then just start the registration process!
Once you have decided to start with Bitcoin, half the job is already done. Then all that remains is to find a crypto exchange that you want to use.
After you have found the crypto exchange you want to use, you just create an account, verify your account and start the purchase process.
