Bitcoin has just received a significant upgrade. As The Block reports, the Bitcoin network launched a long-term upgrade of the “Taproot” code early. The update improves both privacy and security for complicated transactions through new signatures that make it look like any other exchange. This should significantly hamper the job of cryptocurrency thieves.
The Taproot update should also change the scaling of the Bitcoin network by ousting the existing cryptographic system, which will make it easier for cryptocurrencies to cope with requests.
This is the first major network code refresh since 2017 and is coming at the right time. Taproot introduces Schnorr signatures that can make more complex transactions on Bitcoin, such as those from a wallet with multiple signatures, look like any other transaction, thus improving the privacy and security of transactions. The move to Schnorr signatures also has implications for network scaling, as the Taproot upgrade replaces the ECDSA cryptographic framework.