A programmed waiting period between lock-in and activation has since given node operators and miners time to fully upgrade to the latest version of Bitcoin Core, 21.1, which contains the merged code for Taproot.
Taproot upgrades to a different scheme called Schnorr.
Taproot will have many positive repercussions for various projects across the ecosystem.
Taproot is part of a larger effort by developers around the world on a mission to improve the privacy of Bitcoin, since its transaction history is very public.
This is still the case with Taproot, but details of some more complex transactions will be able to be hidden.
Another issue Taproot should address is Bitcoin’s limited transaction space, which makes scalability a huge problem for the digital currency.
Because Schnorr signatures can be used to combine multiple signatures into one, they can help reduce the amount of data stored in the blockchain.
The rest are running old software, which means they will not be able to enforce the new rules of Taproot when it activates – at least, not until they upgrade to Bitcoin Core 21.1.
Indeed, over 90% of miners have already indicated that they plan to upgrade to the new software, which is why Taproot was able to “lock in” back in June, and why there was a 5-month delay before activation would kick in.
Users won’t be able to send or receive the new type of transaction until their particular Bitcoin wallet supports it – and most wallets don’t support it yet.
If history is any guide, it could take months or years for wallets to board the train.
It is giving developers an expanded toolbox to work with as they continue to ideate, iterate and build.
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