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In November 2021, Bitcoin's New Upgrade: Taproot Is Coming. Taproot refers to the straight root of a plant. With this upgrade, Bitcoin is expected to become more solid as the root of this market. Taproot includes BIP-0340, 0341, 0342. This software fork is a Softfork. Unlike a Hardfork, a Softfork is a fork that is compatible with other nodes even after upgrading. This means that you can continue to communicate with your post-upgrade and pre-upgrade nodes. Softfork does not conflict with other rules because it adds new rules.
BIP-0340, 0341, 0342 we call Taproot. To be precise, BIP-0341 is Taproot. However, BIP-0340, 0342 are required to fully run BIP-0341. BIP stands for Bitcoin Improvement Proposals. BIP is a document that contains proposals for improving the functionality of Bitcoin. Many blockchain developers say that this upgrade will enhance Bitcoin’s transaction privacy and improve the utility of smart contracts.
BIP-0340: Schnorr Signatures
Schnorr Signatures offers users adopting Taproot a number of benefits, including greater privacy, lower fees, and more flexible multi-signature.
Taproot defines how Bitcoin’s protocol migrates Schnorr Signatures. Also, it proposes MAST (Merkelized Abstract Syntax Trees). MAST allows for smaller transactions, greater privacy, and greater scope for smart contracts. Taproot uses a new _script_ type Pay-to-Taproot (P2TR) for Bitcoin.
To implement P2TR transactions, BIP-0342 adds and updates several OP Codes. This new _script_ for verification of P2TR and Schnorr Signatures is called Tap_script_.
Editor YB(Gate.io Korea, Marketing Agent)'s Comments
After the Taproot upgrade, Bitcoin can use smart contracts. Therefore, Bitcoin-based protocols and DApps using smart contracts such as Ethereum will be produced. Bitcoin, which so far only served as a symbol, will gain utility and create an ecosystem. We look forward to seeing how this event will affect the market.