Support for Bitcoin’s Taproot Upgrade Surges to 45%

In letter

  • The bitcoin mining pool F2Pool supports the Taproot upgrade proposal.
  • As a result, the upgrade is now supported by 45% of the blockchain’s hash power.
  • Once activated, Taproot should improve the privacy and efficiency of Bitcoin transactions.

F2Pool, currently the largest Bitcoin mining pool around 17% of the entire hash performance of the blockchain – was listed on the website “Taproot Activation” and thus signals support for the Bitcoin protocol upgrade proposal Taproot.

With F2Pool, Taproot, which aims to improve the privacy and efficiency of the network, has now received the combined support of miners responsible for 45% of Bitcoin’s hash power. This means that it is only 6% away from getting a majority.

Taproot is a protocol upgrade proposal originally developed by well-known Bitcoin collaborators Greg Maxwell, Peter Wuille, and Andrew Poelstra. It builds on Schnorr signatures and Merkelized Abstract Syntax Trees (MAST) to improve the privacy, efficiency and flexibility of Bitcoin scripts.

Without going into too many technical details, Taproot makes complex Bitcoin transactions appear as regular transmissions on the blockchain.

In Bitcoin’s blockchain, scripts can be used to create one or more conditions that must be met in order to dispense coins. One of the simplest examples of this is multiple signatures, where multiple parties have to use their keys at the same time to unlock certain coins. Conditions can also be time blocks (ie coins can only be issued after a certain date) or a PIN.

Currently, these conditions are initially hidden in the blockchain and cannot be displayed by third parties. However, once the “scripted” coins are issued, everything The associated conditions will be revealed to everyone – including those who were not met when the coins were unlocked. This means that they can be identified.

Bitcoin is the number one cryptocurrency by market capitalization. Image: Shutterstock.

By combining the above concepts, Taproot enables such complicated transactions to be displayed as regular transactions.

Aside from privacy benefits (other users will never know the terms), this reduces the computational load on the blockchain, allowing developers to write more complex scripts with minimal chain impact.

Schnorr signatures alone can only make transactions with several signatures appear “normal”. Adding Taproot, on the other hand, expands the list of operations that can be masked in this way, including closing a Lightning channel, atom swaps, and other contract protocols.

Taproot could also help solve Bitcoin’s scaling problems and reduce transaction fees. Currently, data-intensive scripts incur higher transaction fees for the effort required to execute them. Since users with Taproot can mask and process these as standard hash public key transactions (with only one signature), this translates into lower fees.

As Decrypt According to reports, the Schnorr and Taproot proposals were implemented in Bitcoin Core on October 15 – but not yet activated. It is still unclear which activation mechanism will be used for them, so it will take some time for the new code to be fully live.