Reports & Analysis

What is the Bitcoin Bitcoin update? A simple answer

Taproot is an important update to the Bitcoin network that has created a consensus in the Bitcoin community. This update has recently been accepted by more than 90% of Bitcoin network miners.

to the the report Crypto Briefing, Teprot is the first Bitcoin update in the last 4 years. This event takes place after the Segwit update.

The Segway Soft Fork Update, along with the Bitcoin Cash Hard Fork, followed two separate paths for bitcoin scalability, which eventually reduced the transaction size and the Bitcoin Cash Hard Fork increased the size of the blocks, and led the Bitcoin user community to Divided into two categories.

Teprot Public Key combines all users into one complex transaction and a unique new key. This increases privacy and reduces the amount of block space required.

Tap Root opens the door to smart contracts on the Bitcoin network and will run in November 2021 (November 1400).

Tap Root is the first Bitcoin Protocol update in the last 4 years, which provides better privacy and security for the Bitcoin blockchain, as well as improving the performance of smart contracts.

More than 90% of the bitcoin blockchain mining hashs over the weekend accepted the Teprot update, indicating that the majority of the community is ready to make changes to the protocol. Although Bainance has resisted Teprot to some extent, it seems that this update has now gained the approval of the Bitcoin community. Teprot was locked in block 687285. SlushPool, one of the top bitcoin mining pools, mined the block on Saturday.

To understand the benefits of upgrading Teprot, you need to understand the performance of in-chain transactions. In fact, a public address generates encrypted proof that has all the appropriate permissions to perform the transaction. This address uses its private key to provide a unique signature and to prove that the transaction was actually performed by the user.

This encrypted proof is stored in the blockchain and explains why we can track every bitcoin transaction. By decrypting the encrypted proofs in each block, anyone can track transactions between addresses and identify the sender and recipient from their public keys.

Smart contracts are interactions between multiple addresses that allow for more complex transactions. Although smart contracts are more related to Ethereum, they can also be created on the Bitcoin network. Smart contracts consist of code that determines the terms of each transaction and can include multiple users.

In the current form of the Bitcoin network, smart contracts require a lot of storage space in the Blockchain. Because transaction fees are a function of the amount of space a transaction wants to occupy on the block, creating smart contracts in Bitcoin is very expensive. Because such complex transactions must combine all the public keys associated with any smart contract. This makes the type of DeFi projects in Ethereum completely impossible.

Teprot combines the public keys of users participating in a smart contract to create a new public key. This key can create a unique signature for which only specific address combinations are possible. These digital signatures are called Schnorr signatures, which were invented by German mathematician Claus Schnorr in the 1970s.

These signatures have two advantages over previous implementations. First, they hide the user’s public keys in any smart contract; This means that only the public key combined and unique to the Blockchain is visible. Second, they drastically reduce the amount of space required per block to create complex smart contracts. It should be noted that a smaller signature requires a lower fee; This is a topic that many Bitcoin users probably welcome. The cost of using the network reached a new record in April, following the increase in the price of Bitcoin.

Average Bitcoin transaction fee

Teprot effectively simulates complex Bitcoin smart contract transactions like simple payments between two public keys. The ability to execute smart contracts paves the way for bitcoin to run decentralized financial activities, as it does in Ethereum. These changes will also apply to the Lightning network, which may be the best place for smart contracts on the Bitcoin network. Teprot will be launched in November 2021 (November 1400).


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