Bitcoin core gets its code upgraded with the Schnorr and the Taproot update in a much-anticipated Bitcoin privacy soft fork, as per open-source platform GitHub.
Enhancing Bitcoin Network
The two Bitcoin Improvement Proposals (BIP) was added into Bitcoin Core earlier today and will be activated at a later date. When activated, the proposals will turbocharge Bitcoin’s transactional capabilities while enhancing the network’s privacy.
Last month, its code developer Pieter Wuille first posted on the update’s pull request, inviting Bitcoin developers to review the code before finalizing its release. Since then, it went over a month of testing, with the Taproot proposal alone seeing over 150 developers reviewing the code.
Schnorr signatures and Taproot are the two biggest changes to the Bitcoin network since Segregated Witness (SegWit)’s activation. SegWit was the reason behind Bitcoin’s blocksize limit, implemented in 2017. Blockchain Improvement proposal or Schnorr BIP 340 itself is based on the SegWit model.
Featuring Schnorr and Taproot Into Bitcoin’s Progress
Schnorr is a possible substitute for Bitcoin’s current multi-signature wallet that uses multiple private keys to facilitate transactions from a Bitcoin wallet. The difference, however, is that the Schnorr update will combine multiple keys to a single key when transacted using Schnorr, significantly reducing the data size of multisign payments while helping to decongest the network.
Meanwhile, Taproot introduces a new transaction output version where users can define conditions for when they spend Bitcoin, even allowing its users (under very certain conditions) to regain access to their lost coins.
The activation mechanism for the BIPs is not yet decided. It might take some time, perhaps even a year, before the code is activated, based on the mechanism that it will go ahead with. The Bitcoin network rarely undergoes such big changes, but this signifies that the network is progressing although slowly, but still with innovative potential.