r/technology – Taproot & Schnorr signatures, Bitcoin’s biggest upgrades since Segwit, expected to lock in early next month


In 2017, the SegWit implementation allowed the network to split transactions by separating signatures in the block chain. The Bitcoin network gained scalability and the upgrade made transactions faster.

Taproot

Taproot is the most significant BTC update since Segwit. It will increase Bitcoin’s fungibility, allow the functionality of smart contracts, and boost privacy by making all transactions look the same to outsiders.

Schnorr Signature algorithm.

Will offer multi-signature options. Bitcoin transactions include multiple inputs and each of them requires a separate signature. Schnorr allows all of the signatures to be combined and stored as one, freeing more room and simplifying the transactions.

Taproot and Schnorr Benefits

  1. Better scalability of the block chain: 30-75% savings on multi-signatures and 2.5 faster block validation, which will translate to lowe fees and faster transactions.

  2. Improved fungibility: all outputs become indistinguishable, increasing privacy.

  3. Script Innovation: provides a much simple way to structure cryptographic signatures.

  4. DLCs (discrete log contracts) : Establishment of communication bridges to information from the outside world to the blockchain. So that once there, that information is processed by smarts contracts within Bitcoin, or any other blockchain that implements the DLCs.

  5. PTLCs ( point time lock contracts ) on layer 2: Allows way more flexibility on the Lightning Network (and features like stuckless payments, payment decorrelation, escrow services. Overall increased efficency and private transactions on layer 2.


In 2017, the SegWit implementation allowed the network to split transactions by separating signatures in the block chain. The Bitcoin network gained scalability and the upgrade made transactions faster.

Taproot

Taproot is the most significant BTC update since Segwit. It will increase Bitcoin’s fungibility, allow the functionality of smart contracts, and boost privacy by making all transactions look the same to outsiders.

Schnorr Signature algorithm.

Will offer multi-signature options. Bitcoin transactions include multiple inputs and each of them requires a separate signature. Schnorr allows all of the signatures to be combined and stored as one, freeing more room and simplifying the transactions.

Taproot and Schnorr Benefits

  1. Better scalability of the block chain: 30-75% savings on multi-signatures and 2.5 faster block validation, which will translate to lowe fees and faster transactions.

  2. Improved fungibility: all outputs become indistinguishable, increasing privacy.

  3. Script Innovation: provides a much simple way to structure cryptographic signatures.

  4. DLCs (discrete log contracts) : Establishment of communication bridges to information from the outside world to the blockchain. So that once there, that information is processed by smarts contracts within Bitcoin, or any other blockchain that implements the DLCs.

  5. PTLCs ( point time lock contracts ) on layer 2: Allows way more flexibility on the Lightning Network (and features like stuckless payments, payment decorrelation, escrow services. Overall increased efficency and private transactions on layer 2.

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