{"id":10806,"date":"2023-06-12T04:45:16","date_gmt":"2023-06-12T04:45:16","guid":{"rendered":"https:\/\/www.bitnovo.com\/blog\/?p=10806"},"modified":"2022-05-17T15:39:01","modified_gmt":"2022-05-17T15:39:01","slug":"all-about-taproot","status":"publish","type":"post","link":"https:\/\/www.bitnovo.com\/blog\/en\/all-about-taproot","title":{"rendered":"All about Taproot"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Alternar tabla de contenidos\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #ffffff;color:#ffffff\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #ffffff;color:#ffffff\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/all-about-taproot\/#how_does_taproot_work\" >How does Taproot work?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/all-about-taproot\/#taproot_features\" >Taproot Features<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/all-about-taproot\/#the_schnorr_signatures\" >The Schnorr signatures<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/all-about-taproot\/#mast_signatures\" >MAST signatures<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/all-about-taproot\/#what_does_taproot_offer\" >What does Taproot offer?<\/a><\/li><\/ul><\/nav><\/div>\n<span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Tiempo de lectura:<\/span> <span class=\"rt-time\"> 4<\/span> <span class=\"rt-label rt-postfix\">minutos<\/span><\/span><p>You may have heard of Taproot. In a few words it is a<strong>\u00a0technology<\/strong>\u00a0implemented to improve the ability to create\u00a0<strong>smart contracts<\/strong>\u00a0in Bitcoin and also improve your privacy.<\/p>\n<p>This system is made possible by the\u00a0<strong>Schnorr signatures<\/strong>\u00a0included in the Bitcoin protocol. This technological update comes with the aim of changing the way Bitcoin scripts had been operating. Taproot improves the\u00a0<strong>security, scalability and privacy<\/strong>\u00a0of the Bitcoin network.<\/p>\n<p>Like all software, the Bitcoin blockchain network can be\u00a0<strong>upgraded and improved<\/strong>. For this purpose, mining pools are being prepared. Everyone is waiting for the new network upgrade, Taproot. Below we will see what it is based on and what it offers us.<\/p>\n<p>Taproot enhancement was developed by<strong>\u00a0Greg Maxwell<\/strong>, developer of\u00a0<strong>Bitcoin Core<\/strong>\u00a0who presented it in January<strong>\u00a02018<\/strong>. Currently its implementation is among the most anticipated in the Bitcoin community. By\u00a0<strong>2020<\/strong>\u00a0Taproot was already listed in the\u00a0<a href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-bitcoin-core\/\">Bitcoin Core<\/a>\u00a0library after\u00a0<strong>Pieter Wuille\u2019s<\/strong>\u00a0pull request.<\/p>\n<p>According to some reports, the Taproot upgrade is planned together with the implementation of\u00a0<strong>Schnorr signatures<\/strong>. These signatures make the Taproot implementation possible and enable the signature\u00a0<strong>aggregation feature.<\/strong><\/p>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<h2><span class=\"ez-toc-section\" id=\"how_does_taproot_work\"><\/span><strong>How does Taproot work?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>This implementation is a\u00a0<strong>Soft Fork<\/strong>\u00a0that, as we have already mentioned, plans to improve\u00a0<strong>privacy<\/strong>\u00a0in Bitcoin. In this network we can perform transactions that employ a series of complex functions such as\u00a0<strong>multi-signature<\/strong>\u00a0requirements or\u00a0<strong>time-locked<\/strong>\u00a0broadcasts.<\/p>\n<p>Without the implementation of Taproot any user can\u00a0<strong>detect transactions<\/strong>\u00a0that employ complex functions such as these. With the advent of Taproot it is possible to\u00a0<strong>cover<\/strong>\u00a0up each and every component of a transaction that includes such functions. This means that even if a transaction implements these functions it will have the same\u00a0<strong>appearance<\/strong>\u00a0as a\u00a0<strong>single<\/strong>\u00a0transaction. This significantly increases\u00a0<strong>privacy<\/strong>\u00a0in Bitcoin.<\/p>\n<p>Taproot will not only help improve privacy, but will also enable the expansion of the Bitcoin network\u2019s\u00a0<strong>multi-signature<\/strong>\u00a0capability for the creation of\u00a0<strong>smart contracts.<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"taproot_features\"><\/span><strong>Taproot Features<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Bitcoin transactions are defined by a<strong>\u00a0series of scripts<\/strong>\u00a0called\u00a0<strong>P2SH.<\/strong>\u00a0These determine how the coins will be spent in the next transaction. A simple transaction is secured by a\u00a0<strong>public key<\/strong>. In this case the recipient of the coins provides his<strong>\u00a0digital signature<\/strong>\u00a0to prove that he is the owner of the coins and can make use of them.<\/p>\n<p>The\u00a0<strong>P2SH<\/strong>\u00a0could modify their actions by establishing restrictions that condition\u00a0<strong>BTC<\/strong>\u00a0transactions and blockchain movements. An example would be the establishment of\u00a0<strong>Time Lock<\/strong>. This action allows the locking of coins by a date or block height that will determine when they can be spent.<\/p>\n<p>Other features that can be established in Bitcoin transactions are\u00a0<a href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-a-multi-signature-wallet\/\">multi-signatures<\/a>. This condition is about a set of users becoming the owners of a wallet. Being multiple owners requires\u00a0<strong>multiple signatures<\/strong>\u00a0to\u00a0<strong>authorize<\/strong>\u00a0movements with the funds.<\/p>\n<p>All these implementations help to better use the\u00a0<strong>Bitcoin blockchain<\/strong>, however, when a transaction is authorized all the features implemented in the transaction are\u00a0<strong>revealed<\/strong>. In other words, making a transaction exposes the\u00a0<strong>conditions<\/strong>\u00a0set in the transaction. This represents a\u00a0<strong>privacy<\/strong>\u00a0problem for the network. In the wake of this problem comes\u00a0<strong>Taproot<\/strong>, the enhancement that helps the\u00a0<strong>privacy<\/strong>\u00a0of the Bitcoin network. Taproot helps by preventing the\u00a0<strong>conditions set<\/strong>\u00a0in each transaction from being revealed. Instead of revealing them it will only reveal the<strong>\u00a0final condition<\/strong>\u00a0of the transaction and in turn show the transactions as\u00a0<strong>normal<\/strong>\u00a0transactions making it impossible to distinguish one transaction from the other.<\/p>\n<p>To get an idea of the power of Taproot, it allows you to<strong>\u00a0hide<\/strong>\u00a0the fact that a Bitcoin\u00a0<strong>script<\/strong>\u00a0has been executed. This means that even if we have performed a\u00a0<strong>Peer-to-Peer transaction, smart contracts<\/strong>\u00a0or a\u00a0<a href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-the-lightning-network\/\">Lightning Network<\/a>\u00a0transaction, the transaction will be indistinguishable. From the outside, any user monitoring the movements will only see a\u00a0<a href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-a-peer-to-peer-network\/\">Peer-to-Peer<\/a>\u00a0transaction.<\/p>\n<div id=\"image_1233771678\" class=\"img has-hover x md-x lg-x y md-y lg-y\">\n<div class=\"img-inner dark\"><img fetchpriority=\"high\" decoding=\"async\" class=\"attachment-large size-large lazyloaded\" src=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/05\/Qu%C3%A9-es-Bitcoin-taproot.jpg\" sizes=\"(max-width: 768px) 100vw, 768px\" srcset=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/05\/Qu\u00e9-es-Bitcoin-taproot.jpg 768w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/05\/Qu\u00e9-es-Bitcoin-taproot-300x205.jpg 300w\" alt=\"Qu\u00e9-es-Bitcoin-taproot\" width=\"768\" height=\"526\" data-srcset=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/05\/Qu\u00e9-es-Bitcoin-taproot.jpg 768w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/05\/Qu\u00e9-es-Bitcoin-taproot-300x205.jpg 300w\" data-src=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/05\/Qu\u00e9-es-Bitcoin-taproot.jpg\" data-sizes=\"(max-width: 768px) 100vw, 768px\" \/><\/div>\n<\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<h2><span class=\"ez-toc-section\" id=\"the_schnorr_signatures\"><\/span><strong>The Schnorr signatures<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The implementation of Taproot requires the combination of two technologies.\u00a0<strong>These are Schnorr and MAST or Merkelized Abstract Syntax Tree signatures<\/strong>. When we refer to\u00a0<strong>Schnorr<\/strong>\u00a0signatures we are talking about a technology that allows different signatures to be added to transactions and that in turn these signatures can be\u00a0<strong>unified<\/strong>\u00a0into a single one.<\/p>\n<p>It is a cryptographic signature scheme developed by the German mathematician and philosopher<strong>\u00a0Claus Schnorr.<\/strong>\u00a0Schnorr had his algorithm protected until\u00a0<strong>2008<\/strong>\u00a0by a patent, however, this expired and can now be implemented.<\/p>\n<p>These signatures offer several<strong>\u00a0benefits<\/strong>, including\u00a0<strong>simplicity and efficiency<\/strong>\u00a0in the generation of short signatures. For the creation of Bitcoin, Satoshi Nakamoto could have chosen this signature scheme, but he chose\u00a0<strong>the Elliptic Curve Digital Signature Algorithm (ECDSA)<\/strong>. His choice was due to the fact that this algorithm was already widely used in those years,<strong>\u00a0secure<\/strong>\u00a0and\u00a0<strong>open source.<\/strong><\/p>\n<p>However, years later\u00a0<strong>the Schnorr Digital Signature Scheme (SDSS)<\/strong>\u00a0may be a big step in the development of the platform and other blockchain networks.<\/p>\n<p>Thanks to the unification of signatures the scheme can be\u00a0<strong>implemented<\/strong>\u00a0in other important applications, since it allows the combination of\u00a0<strong>public keys<\/strong>. These signatures are considered the most\u00a0<strong>secure<\/strong>\u00a0version of\u00a0<strong>elliptic curve<\/strong>\u00a0cryptography. Another advantage is the\u00a0<strong>speed of verification<\/strong>. This means that transactions can be completed in less time.<\/p>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<h2><span class=\"ez-toc-section\" id=\"mast_signatures\"><\/span><strong>MAST signatures<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>MAST allows us to\u00a0<strong>hide<\/strong>\u00a0the non-active conditions in a transaction through Taproot. Instead of showing them, only the conditions that were activated in the network are shown.<\/p>\n<p>MAST works with the\u00a0<strong>Merkle Tree<\/strong>\u00a0structure by which it individually divides the conditions set for the use of BTC coins. Therefore it does not group them into a single Hash, but instead includes them into a Merkle tree. This tree provides what would be a<strong>\u00a0Merkle root<\/strong>\u00a0where it stores the coins.<\/p>\n<p>Thanks to this operation, if any\u00a0<strong>data<\/strong>\u00a0contained in the Merkle tree is revealed, this information can be\u00a0<strong>verified<\/strong>. To verify this information we only need to verify that the data is\u00a0<strong>inside<\/strong>\u00a0the Merkle root. This whole process is quick and easy and can be carried out without\u00a0<strong>revealing<\/strong>\u00a0all the information contained in the tree.<\/p>\n<p>This is the mechanism that Taproot will use to\u00a0<strong>avoid revealing transaction information<\/strong>, only the\u00a0<strong>condition<\/strong>\u00a0that is met when the transaction is made is revealed. In this way, the rest of the data will be kept\u00a0<strong>hidden and protected<\/strong>. This helps the Bitcoin network to advance in the implementation of\u00a0<a href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-a-smart-contract\/\">smart contracts<\/a>\u00a0making them more secure and efficient.<\/p>\n<div id=\"image_2125914636\" class=\"img has-hover x md-x lg-x y md-y lg-y\">\n<div class=\"img-inner dark\"><img decoding=\"async\" class=\"attachment-large size-large lazyloaded\" src=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/05\/Qu%C3%A9-es-Bitcoin-taproot2.jpg\" sizes=\"(max-width: 768px) 100vw, 768px\" srcset=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/05\/Qu\u00e9-es-Bitcoin-taproot2.jpg 768w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/05\/Qu\u00e9-es-Bitcoin-taproot2-300x205.jpg 300w\" alt=\"Qu\u00e9-es-Bitcoin-taproot\" width=\"768\" height=\"526\" data-srcset=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/05\/Qu\u00e9-es-Bitcoin-taproot2.jpg 768w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/05\/Qu\u00e9-es-Bitcoin-taproot2-300x205.jpg 300w\" data-src=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/05\/Qu\u00e9-es-Bitcoin-taproot2.jpg\" data-sizes=\"(max-width: 768px) 100vw, 768px\" \/><\/div>\n<\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<h2><span class=\"ez-toc-section\" id=\"what_does_taproot_offer\"><\/span><strong>What does Taproot offer?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>It is a fact that Taproot brings several advantages to the Bitcoin network, here are some of the most important ones:<\/p>\n<ul>\n<li aria-level=\"1\"><b>Improved privacy.\u00a0<\/b>By making conventional and advanced transactions indistinguishable, network privacy is enhanced.<\/li>\n<\/ul>\n<ul>\n<li aria-level=\"1\"><b>MAST.\u00a0<\/b>MAST will increase the difficulty of tracking users in the Bitcoin network and transactions made.<\/li>\n<\/ul>\n<ul>\n<li aria-level=\"1\"><b>Scalability.\u00a0<\/b>Taproot together with Schnorr signatures contribute to improve network scalability by reducing the storage demand in each block.<\/li>\n<\/ul>\n<ul>\n<li aria-level=\"1\"><b>Increased adoption.\u00a0<\/b>The Bitcoin system will begin to reduce transaction confirmation times making the currency a more fungible asset.<\/li>\n<li aria-level=\"1\"><b>More transactions.\u00a0<\/b>By reducing the demand for storage in each block, a greater number of transactions per block will be possible and transaction fees will be lower.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p><span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Tiempo de lectura:<\/span> <span class=\"rt-time\"> 4<\/span> <span class=\"rt-label rt-postfix\">minutos<\/span><\/span>You may have heard of Taproot. In a few words it is a\u00a0technology\u00a0implemented to improve the ability to create\u00a0smart contracts\u00a0in Bitcoin and also improve your privacy. This system is made possible by the\u00a0Schnorr signatures\u00a0included in the Bitcoin protocol. This technological update comes with the aim of changing the way Bitcoin scripts had been operating. Taproot [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":6909,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[185],"tags":[],"class_list":["post-10806","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blockchain-en"],"_links":{"self":[{"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/posts\/10806","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/comments?post=10806"}],"version-history":[{"count":0,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/posts\/10806\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/media\/6909"}],"wp:attachment":[{"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/media?parent=10806"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/categories?post=10806"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/tags?post=10806"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}