Pre-Taproot, companies like Chainalysis, which attempt to track BTC transactions and link wallets to identities, could glean insights into a network user’s spending habits and make connections between multiple users based on their activity.īy making transactions appear the same, regardless of whether the BTC being spent has one, two or even a hundred possible recipients, Taproot significantly improves privacy on the network. It achieves this by introducing a change that makes all transactions, regardless of their complexity, look the same.
#UPGRADE BITCOIN CORE UPGRADE#
Put simply, Taproot is an upgrade to the Bitcoin protocol that aims to increase privacy on the network. We offer this “too long didn’t read” section to those interested in Bitcoin’s development but who lack the technical background to fully grasp everything featured in this in-depth article. The cryptography and other technical details that go into an upgrade like Taproot are complex, and some of the concepts discussed in this article - particularly under the “Taproot explained” header - may go over the lay reader’s head. Concluding, we analyze the price action surrounding Taproot and speculate as to why the market seems indecisive over its advantages and disadvantages. Next, we go into more technical details about the upgrade, its history and its likely impact. We begin by giving a quick “TLDR” of the upgrade for those readers looking for a brief overview of Taproot and its implications. In this OKX Insights in-depth article, we’re putting Taproot under the spotlight. Days after the upgrade, BTC continues to trade in the high-$50,000 zone - reasonably close to its previous all-time high, set in spring 2021.
However, beyond the most passionate Bitcoiners, the soft fork activated with few fireworks and little fanfare. The upgrade has been heralded as a serious boon for the network’s privacy, efficiency and functionality. The long-awaited Taproot soft fork activated at block height 709,632, which was mined on Nov. With regulators already eyeing privacy-enhancing tools, is Taproot really that bullish for BTC?īitcoin’s first upgrade in more than four years is now live on the network.
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