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Bitcoin, Taproot and Schnorr Signatures

Taproot, along with Schnorr signatures is one of the most anticipated technological updates to bitcoin since the advent of SegWit. Taproot is a project that will change how Bitcoin’s scripts work to increase privacy, security, and scalability. Taproot will combine with an upgrade called Schnorr Signatures to make this possible.

Anybody who is familiar with cryptocurrency knows that security, privacy, and scalability are important concerns. These issues need to be addressed, even though Bitcoin is the most widely used cryptocurrency in the world. Taproot is aiming to achieve this.

Although Bitcoin has seen its ups as well as downs, it has been the anchor that has kept the crypto-verse afloat. Mt. The Gox hack and the notorious Bitcoin hardforks have both been a part of the crypto community.

Privacy is one of the most important issues. Because Bitcoin is a public Blockchain, anyone can see the transactions that take place on the network. This is a significant concern for some.

You can increase your anonymity by using techniques like coin mixing or CoinJoins. These techniques do not make Bitcoin a private currency. Taproot is not a private currency, but it can help increase anonymity.

Taproot has been widely expected to be a significant first step towards solving Bitcoin’s privacy and other concerns. What is Taproot and how will it help Bitcoin? Let’s get into it.


Taproot is a soft-fork that enhances Bitcoin’s scripts in order to improve privacy and other factors associated with complex transactions. Different features can make transactions on the Bitcoin network more complicated, such as time-lock release, multi-signature requirements and many others.

Taproot is not able to detect complex transactions, which may require multiple transactions. The Taproot upgrade will allow you to “cloak all the moving parts” of a Bitcoin transaction. Even if transactions adopt these features, it will still look like one transaction. This is a huge win for Bitcoin privacy advocates.

Taproot actually makes it possible to conceal the fact that any Bitcoin script was running. Taproot can make it possible to spend Bitcoin in a Lightning Network channel. This could allow for a peer-to–peer transaction or a sophisticated smart-contract. Any person monitoring these transactions would only see a peer to-peer transaction. However, it is worth noting that both the wallets and addresses of the final recipient and the initial sender will be visible.

Greg Maxwell, a Bitcoin Core developer, first revealed the Taproot proposal in January 2018. After a pull request by Pieter Wuille, Taproot was merged into the Bitcoin Core library as of October 2020. Node operators need to adopt Taproot’s new consensus rules in order for the upgrade to fully deploy. The activation process could take several months depending on how it unfolds.

Taproot will be integrated with Schnorr signatures, an upgrade to Taproot. This makes Taproot’s installation possible and allows for signature aggregation, which is a highly-anticipated feature.

Schnorr Signatures

Schnorr signatures are a cryptographic sign scheme that Claus Schnorr, a German mathematician/cryptographer, developed. Although Schnorr’s algorithm was protected by a patent for many decades, the patent expired in 2008. Schnorr signatures have many benefits but are best known for their simplicity, efficiency and ability to generate short signatures.

Satoshi, the creator of Bitcoin, adopted an algorithm called Elliptic Curve Digital Signature Algorithm. ECDSA was chosen over Schnorr’s signature algorithm because it was well-known, easily understood, compact, secure, and open source.

The Schnorr Digital Signature Scheme, (SDSS), may be the beginning of a new generation signatures for Bitcoin and other Blockchain networks.

Schnorr signatures have the advantage of being able to take multiple keys within a complicated Bitcoin transaction and create a unique signature. This allows multiple signatures to be “aggregated” into one Schnorr signature. This is called signature aggregation.

Taproot will benefit Bitcoin

Taproot, as we have already mentioned, will make Bitcoin’s privacy much more secure. Taproot, when combined with Schnorr signatures may increase efficiency in transactions. Other potential benefits of Taproot include enhanced privacy and other benefits.

  • Blockchain allows for a lower amount of data to transfer and be stored on the blockchain.
  • Higher TPS rates mean more transactions per block
  • Transaction fees are lower

Taproot also has the advantage of removing signature malleability from transactions, which is known to be a security risk on the Bitcoin network. Signature malleability simply means that you can technically alter the signature of a transaction before it is confirmed. This would make the transaction appear to have never occurred. This exposes Bitcoin to the double-spending issue that could cause serious damage to the integrity of the distributed ledger .

Taproot is a popular and well-supported upgrade to Bitcoin. It will bring about significant improvements in privacy, security, scaling, and other areas. These upgrades could also increase interest in the Lightning Network and encourage multisig becoming a more common industry standard.

No matter how involved you are in the Bitcoin community, the additional benefits of privacy, efficiency, security, and security will most likely affect your experience with Bitcoin.