There are only a few days left until the biggest Bitcoin network update of the year.
According to calculations, block 709632 will be mined on the night from Saturday to Sunday. 90% of miners reported that they approve of the Taproot update, which will improve privacy, efficiency and expand the capabilities of smart contracts.
This is the first major update to the Bitcoin protocol since 2017, when Segregated Witness (SegWit) was introduced.
Some of the main benefits of the proposed update:
- Increased privacy: This does not apply to Bitcoin addresses or increased anonymity. This applies to transaction types. Taproot will perform complex transactions indistinguishable from simple transactions.
- Lower fees: The data size of complex Bitcoin transactions will be reduced, resulting in lower transaction costs.
- More flexibility: A new type of signature will expand the functionality of smart contracts, making them easier and cheaper for users.
- Lightning boost: Taproot will make transactions cheaper, more flexible and more confidential. The Lightning Network is a Layer 2 solution that enables faster and more scalable payments while offering network security while enhancing speed and throughput.
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