Bitcoin Taproot update is one of the first changes to be made on the network after a long time. Developed by Greg Maxwell, Peter Wuille and Andrew Poelstra, Taproot can actually be described as a privacy protocol. Taproot uses the Schnorr signature structure and the Merkelized Abstract Syntax Trees (MAST) protocol. So what is Taproot and how did it get a significant 45% miner support?
In fact, in order to understand the Taproot update, the Schnorr and MAST structures must be known first. MAST aims to make transactions of much smaller sizes in the Bitcoin network more confidential. MAST is a mixture of Merkle Trees and Abstract Syntax Trees structures familiar to computer scientists. Although the MAST update is based on a fairly long basis, it can be said that it will offer the Bitcoin network a more hidden and smaller transaction option.
On the other hand, Schnorr signature algorithm has a security model based on the insolvability of discrete logarithm problems. The Bitcoin network, which normally uses the ECDSA digital signature algorithm, is switching to the highly controversial Schnorr signature protocol to take up less space. Thanks to the Schnorr signature protocol, it is aimed to reduce the transaction size and the transaction fee paid to miners.
What will the Bitcoin Taproot update do?
Taproot, on the other hand, started to be developed with the goal of increasing the privacy, efficiency and flexibility of commands on the Bitcoin network as a combination of the two. So aren’t Bitcoin transactions already private and why an additional privacy protocol like this is needed?
Although transactions on the Bitcoin network are secret to a point, there are also places where privacy is compromised. In the Bitcoin network, commands can be created that require certain conditions to be met in order for certain BTCs to be spent or reached. The most common example of this can be expressed as multi-signature wallets or time-locked wallets.
Even if these conditions are confidential in the blockchain network and outside viewers do not know what condition is fulfilled, the wallet will be accessible, but if one of the BTCs with extra command is spent, all the conditions will arise. This shows that the conditions and funds that must remain confidential will emerge. Taproot, on the other hand, aims to remove this and keep BTCs with special conditions and commands hidden.
F2Pool supports Taproot
In addition to the privacy it will offer, it is predicted that it will significantly remove the burden on the Bitcoin blockchain network. By writing more complex commands, developers will not create an extra load on the blockchain network.
That brings hash power support to about ~45%. https://t.co/mdh3GTRRo1
— Aaron van Wirdum (@AaronvanW) November 19, 2020
F2Pool, the largest Bitcoin mining pool, was also among those who approved of Taproot activation. With the participation of F2Pool, which has 17% of the Bitcoin hash power, the rate of Miners who support Taproot reached 45%. It can be said that with reaching 51%, this will be resolved and Taproot will be activated.