All About Taproot

On November 14, 2021 – in two days – the Bitcoin network will be receiving a major upgrade. Taproot is the first upgrade to the Bitcoin network in over 4 years and will greatly improve several aspects of Bitcoin’s operation. In this piece we will take a look at what we can expect from the taproot upgrade as well as which Killer Whale Products .

What is Taproot

Taproot will activate three fundamental changes within Bitcoin’s base-level code, which will improve the privacy, security, and scalability of the Bitcoin network. Most importantly, Taproot will allow for basic smart contract functionality: one of the key features offered by many of the newer cryptocurrencies that Bitcoin currently lacks. Technically speaking, Bitcoin uses a form of cryptography known as ECDSA signatures for proof of ownership and the execution of transactions. Once Taproot is enabled, users will be able to use Schnorr signatures in addition to the ECDSA signatures which the Bitcoin network currently uses. The Schnorr signature is superior to the ECDSA signature in that it allows for what is known as key signature aggregation, ergo improving Bitcoin’s compressibility, as can be seen in the image below.

Schnorr signatures also allow for the additional cryptographic function, known as a MAST script. MAST scripts improve the scripting compressibility of the Bitcoin blockchain. Currently, whenever code is executed on the Bitcoin blockchain, it goes through a verification process wherein all the code is sent to all of the nodes within the network. With the addition of Schnorr signatures, developers will be able to compress their code into a singular hash called a MAST root.

The impact of Taproot

The last time the Bitcoin Network received an upgrade back in 2017, The price of BTC climbed by 50 percent, to a then staggering $4,247 one month after the Segwit upgrade went live. Although it is too early to tell how greatly Taproot will affect the price of BTC, it will likely follow the pattern presented by the previous upgrades, which has always led to positive price action. That being said, it would be advantageous to start running the Killer Whale Gain BTC Strategy if you are not already; however, every Killer Whale Signal and Strategy will benefit from positive BTC price action.

Conclusion

The addition of basic smart-contract capabilities makes the Taproot upgrade one of the most vital upgrades Bitcoin has ever seen. This will allow Bitcoin to perform some of the same tasks as cryptocurrencies such as Ethereum, creating more incentive for cryptocurrency investors to build Bitcoin related applications. These basic smart contract capabilities will also allow the Bitcoin Lightning network to function more securely and efficiently than it already does.

The increase of the market cap of BTC will inevitably have a positive impact on every other cryptocurrency. Be sure to check out the Killer Whale Products page to see which signals and strategies – like Killer Whale Gain BTC – are right for you!

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