Jason Lau is the COO of Okcoin.
Nearly four years after Bitcoin’s last major update, Taproot is finally closed and will be activated in November. This is a huge win for Bitcoin and the entire ecosystem, whether or not you understand the technical intricacies of the upgrade itself. Okcoin will support Taproot when activated, to ensure that our customers and the network benefit.
Taproot is a win-win for regular users because it will make transactions cheaper: switching from the current standard (ECDSA) to Schnorr signatures will make transactions 12% more efficient. It would also make smart contracts cheaper, by requiring fewer signatures to be broadcast to the blockchain. More efficient use of block space will benefit everyone.
Taproot is a plus for high-end users as well, as it will make Bitcoin more private and exchangeable. The strength of the Bitcoin blockchain is that every transaction is public, but this comes with trade-offs of privacy and switchability. With Taproot, all simple and complex transactions will look the same. Combined with efficiency improvements, this will accelerate the further development of DeFi and other smart contract use cases on top of the Bitcoin network.
Taproot is a win-win for the Lightning Network – a second layer technology, built on Bitcoin and allowing for much faster and cheaper transactions. El Salvador recently saw a lot of interest when it announced a legal tender for bitcoin, but not many know that bitcoin adoption there is backed by Lightning. With Taproot, the process of using Lightning will be improved. Okcoin was one of the The first exchanges to enable LightningWe’re keen to incorporate the changes and see the Lightning ecosystem continue to grow.
Taproot is a win for the community as a whole. The relatively smooth process by which Taproot is proposed, discussed, coded, reviewed and locked has proven that not all changes have to be controversial, and that consensus can be reached. The Speedy Trial, a three-month process for miners to flag Taproot support, worked beautifully, and could be the base model for activating future upgrades.
Taproot is undoubtedly a huge improvement and it’s great to see him approach the finish line. Taproot was first proposed in 2018, showing that thoughtful and thoughtful Bitcoin promotions are a success. With hundreds of global open source developers working on improvements, Bitcoin is not static and constantly evolving. Taproot will expand the possibilities offered by Bitcoin and we can’t wait to see what gets built.
This is a guest post by Jason Lau. The opinions expressed are their own and do not necessarily reflect the opinions of BTC Inc. or Bitcoin Magazine.