Bitcoin (BTC) developers announced the completion of the upcoming BTC blockchain soft fork called Taproot/Schnorr. Developers will integrate the upgrade when they answer the questions of the crypto community.
Bitcoin Core developer Gregory Maxwell announced the Taproot project in January 2018. The update is designed to increase the level of network scalability and improve the scripts. The software will be launched on the BTC blockchain with the Schnorr upgrade, designed to enable the aggregation of digital signatures and apply updates provided by Taproot.
Square Crypto product manager Steve Lee said that after the soft fork, the transaction fee on the BTC network will be reduced by 30-75%, while the time for adding a block will decrease by 2.5 times. The update is planned to be implemented in May 2020 after the completion of the feedback section on the soft fork.
In the process of confirming transactions on the BTC blockchain, public cryptographic keys are used. Softrock Taproot/Schnorr was created to eliminate the shortcomings of the current version of the Elliptic Curve Digital Signature Algorithm associated with low transaction confidentiality and script interchangeability. An upgrade can solve these problems by hiding certain types of payments from third parties.
We offer to consider the benefits of Taproot using the example of a transaction with two signatures and three keys. To send cryptocurrency, the parties are required to transfer three keys and both signatures to the network node. After starting the update, the keys can be combined into one Schnorr signature and used to confirm the Taproot key, which includes all other keys. As a result, information about the keys and signatures used will be hidden from blockchain browsers. This will reduce the weight of the transaction and, accordingly, the fees, as well as increase the level of anonymity.
According to Steve Lee, Taproot makes it possible to develop new scripts, as the upgrade allows you to combine several signatures and keys and removes restrictions on the number of scripts that can be used to send coins.
The Block media company conducted a public poll in which over 100 investors, analysts, and heads of cryptocurrency enterprises took part. As a result, soft fork took the third place in the list of the most anticipated upgrades of 2020. Bitcoin Core Specialist Jimmy Song is confident that Taproot/Schnorr will not only save users money but will also attract businessmen to the Bitcoin network. Experts believe that Taproot will be integrated into many crypto wallets to increase security and create new features.