Taproot and Schnorr is what the first Bitcoin update in 3 years will entail. Let’s take a look at what these words actually mean in a non-technical way and see how it will affect using Bitcoin for the normal person.
What is Schnorr?
Schnorr is, in short, an improvement to the privacy of multi-signature (multi-sig) transactions as well as improves the scalability of Bitcoin. To understand how it affects the privacy and scalability of it all, one first needs to understand multi-signature wallets.
Multi-signature Wallets and Schnorr
Multi-sig wallets are a way of saying that multiple signatures are required to sign a transaction. In other words, with married couples or company owners, both the husband and the wife or all the business owners may need to sign a document for it to be approved- such as with a large bank transfer, both the wife and husband have to agree and sign the bank documents.
With multi-sig wallets, this is the same. If there are multiple wallet owners, they can make sure that one person can send all Bitcoins somewhere else without the other owners’ agreement. Through Schnorr, the privacy of who the owners of the multi-signature transaction are is made private, which is not in the current environment. Scalability is also an aspect as less data is required to be sent for multi-sig transactions through Schnorr
What is Taproot?
Taproot improves the privacy, efficiency, and flexibility of Bitcoins scripting capabilities, which means that developers have a broader scope to build an oracle service on top of Bitcoin.
What Are Your Thoughts?
What is currently being built within Bitcoin may be slow and not as mediatic as other things in the overall crypto space. However, it will be interesting to see these new features built into Bitcoin and it’s applications. A more private and scalable Bitcoin will be great for all. What are your thoughts. Write us your comments and let us know what you think should be the next big Hype.