Taproot will introduce what’s called Schnorr signatures, which will help bitcoin transactions become more private, efficient and less expensive.
Though some experts believe that Taproot will have a minimal impact on bitcoin’s price, it’s important that investors understand the effects of the upgrade.
They’re essential in powering decentralized finance, or DeFi, applications and nonfungible tokens, or NFTs, for example.
To do this, Schnorr signatures will ultimately allow for multi-signature transactions, or those that involve multiple addresses, to appear as a standard, single transaction.