Taproot aims to improve many things like privacy features and scalability for the bitcoin network.
Before we get deep into the major things revolving around Taproot, the latest bitcoin upgrade that went live on Sunday, it’s important to know what it is and why it’s important. The Taproot upgrade is the biggest upgrade bitcoin has received in the past four years, when it saw ‘SegWit’, or Segregated Witness, the last upgrade in 2017. As we slowly move towards understanding the world of cryptocurrency, it is important to know about it. This is the latest upgrade as far as the world’s oldest and most trusted cryptocurrency is concerned.
Features of Taproot
Taproot aims to improve a number of things for the bitcoin network, including privacy features and scalability. Keeping this change in mind, now, there should be a better wallet functionality and lower fee structure for complex transactions. The cheaper transaction fee will be one of the most significant changes that can be seen after this upgrade.
The Taproot upgrade introduces some set of new rules that you need to know if you want to trade in bitcoin. With this new addition, whenever you want to spend coins, you have to use the Taproot address.
Support for Taproot Upgrade
Cryptocurrency miners as well as investors are quite optimistic about this upgrade. He believes that this upgrade is likely to propel bitcoin prices in the crypto world. This is a general approach that leads investors and minors to believe that this is an opportunity to establish themselves in the sector. However, there is a reason behind this optimism. Last time, when SegWit was introduced, there was a 50 percent increase in value inheritance in the crypto world. So analysts are expecting the same thing to happen this time as well. However, some of them also believe that the price increase will not be so significant as the bitcoin price is already high.
This new upgrade has received universal support from the bitcoin community, a stark contrast to what happened in 2017. With SegWit, some in the bitcoin mining community were unhappy with the update and thought it was a weakness of the blockchain. However, the Taproot upgrade has not faced any such resistance and has managed to garner universal support from the bitcoin community.
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