Popular Cryptocurrency’s First Upgrade in Four Years Yields Intensified Privacy and Efficiency; What is Taproot?

bitcoin, Cryptocurrency, crypto, crypto market, Dogecoin, Ethereum, taproot, cryptocurrency's, Bitcoin's, smart contracts

(Photo : Getty Image: Dan Kitwood)

The popular cryptocurrency, Bitcoin, is going to have a significant upgrade after four years. Taproot will provide a new normal for Bitcoin investors.

Bitcoin will have an upgrade for the first time since 2017. The new update has an approval rate of 90% among miners worldwide, a rare occurrence of unanimity among all stakeholders.

Popular Cryptocurrency’s Update: What is Taproot

Bitcoin’s latest upgrade is known as Taproot.

According to CNBC, the update will take effect in November, and it will provide better transaction efficiency and privacy.

The upgrade will also unleash Bitcoin’s potential for smart contracts, a crucial feature of its blockchain technology. It functions to eliminate the need for middlemen even during the most complicated transactions.

Alyse Killen, the founder of Bitcoin-focused venture firm Stillmark, said that Taproot is an essential upgrade. Taproot opens brand new doors of opportunity for all Bitcoin users interested in expanding the cryptocurrency’s utility.

Unlike Bitcoin’s upgrade in 2017, the “Last Civil War,” the Taproot upgrade received universal support from all users. Taproot is even more interesting because it brings crucial changes that are incremental enhancements to Bitcoin’s code.

Bitcoin’s Changes:

The 2021 Bitcoin upgrade focuses on digital signatures — an essential aspect of Bitcoin, and the entire crypto market. A digital signature works similar to a fingerprint that a user leaves for each transaction that they take part in.

Bitcoin is known for using the “Elliptic Curve Digital Signature Algorithm.” It stems from the private key that controls a user’s Bitcoin wallet to ensure that the correct owner can only use the cryptocurrency.

But with the rise of Taproot, Bitcoin will shift to “Schnorr signatures.” This upgrade could affect other cryptocurrencies, like Dogecoin and Ethereum.

According to Alejandro De La Torre, the Vice President of Poolin, Schnorr signatures make multi-signature transactions unbreakable and unreadable.

As a result, it technically provides better privacy to each user because their keys would not have that much exposure on the chain.

Brandon Arvanaghi, a former security engineer at Gemini, stated that users could kind of hide who they are with the use of Schnorr signatures.

But do not worry because Schnorr signatures do not equate to anonymity. It just provides better privacy by making simple transactions indistinguishable.

Schnorr Signatures’ Effect on Smart Contracts

CNBC also said that Schnorr signatures would be a game-changer for smart contracts. These contracts are self-executing agreements residing on Bitcoin’s blockchain.

In theory, smart contracts can be used in any form of transaction, from a user’s monthly rent to purchasing a vehicle.

The Taproot upgrade can make smart contracts smaller and cheaper in terms of the space they take up within Bitcoin’s blockchain.

Kileen further said that because of this improved functionality and efficiency, Bitcoin presents a mind-blowing potential.

There is an increasing number of programmers who are focused on building smart contracts within Bitcoin’s blockchain, resulting in Bitcoin’s utilization on the world of DeFi – decentralized finance. It is a term that describes various financial applications made to remove the middleman.

A recent Explica report mentioned that Bitcoin’s latest upgrade would take effect in November.

Written by Fran Sanders

News Related

OTHER NEWS

Car recalls for July 22-29

The U.S. National Highway Traffic Safety Administration has issued recalls for July 22 through 29, including a Ford recall involving 644,055 units and a Lincoln recall involving 33,298 units. See ... Read more »

How to watch Badminton at Olympics 2020: key 2021 dates, free live stream and more

The Tokyo Summer Olympics 2020 will witness 172 world-class badminton players clash against each other in one of the most watchable events at the global sports showcase. Feeling the pressure ... Read more »

Tesla's new update includes Disney+ and I AM SWEATING WITH JOY

Tesla started pushing a new 2021.24 software update to its fleet and it’s one of the ‘big’ ones, giving a handful of extra perks to its customers.  The update was ... Read more »

Ride-sharing startup Swvl is going public via SPAC at a valuation of USD 1.5 billion

The Cairo-born startup has raised over USD 100 million to date and aims to grow its annual gross revenue to USD 1 billion by 2025. Read more »

NBN Co offers one month COVID-19 relief to RSPs

NBN Co has put $5.2 million in “relief credit” on the table for retail service providers to mitigate the increasing bandwidth costs of recent COVID-19 lockdowns.  The broadband builder will ... Read more »

The Google Play Store may need a serious security upgrade

Google’s Play Protect security service has fared poorly in an endurance test of Android security apps. With the number of malware-laden malicious apps on the rise, AV-Test pitted 15 security ... Read more »

How Instagram Reels may be ‘impacting' your Facebook account

Instagram Reels seems to have really taken off. The head of Instagram recently said that videos — mainly Reels — is what Instagram will be focusing on. Now, Facebook CEO ... Read more »

Citrix Endpoint Management MDM review

Formerly known as Xenmobile, Citrix Endpoint Manager is a unified device management system that provides a simplified platform for IT departments to monitor and administer hardware of all types. With ... Read more »

The Witcher: Monster Slayer hit a million downloads already, but it's no Pokémon Go

On July 21, The Witcher: Monster Slayer launched as another mobile game to take on the huge Pokémon Go in the traveling-ARG genre. It suffered from server issues on launch ... Read more »

How to watch Track Athletics at Olympics 2020: key dates, free live stream and more

14 track athletics events are available to watch at the 2020 Olympics. The events, that range in distance from 100m to 10,000m, are set to give 10 days of record ... Read more »

CMD Solutions offers training for IT professionals to sharpen cloud skills

Amazon Web Services (AWS) consulting partner CMD Solutions has launched an intensive employment pathway program targeted at experienced IT professionals looking to gain cloud skills. The program, called learnCMD, will ... Read more »

F1 live stream: how to watch every 2021 Grand Prix online from anywhere

At Silverstone, Hamilton topped the podium for the first time in six races, but the first-lap incident between him and Verstappen left viewers shocked and Max feeling cheated, but thankfully ... Read more »

Micromax to launch two TWS earbuds along with Micromax IN 2b on July 30

Domestic smartphone brand Micromax is set to expand its smartphone lineup tomorrow, July 30 with the launch of Micromax In 2b. However, the company’s co-founder Rahul Sharma has revealed that ... Read more »

Best Samsung TV: our top QLED picks for 2021

On the hunt for the best Samsung TV of 2021? This guide is for you. Although we might only be halfway through the year, we’d bet that the best TV ... Read more »

Bring your idea to life with Namecheap's exclusive summer sale

Namecheap has been around for the past two decades, delivering the components of a competitive website: a domain registry, web hosting service, and SSL certificate. At present, there Namecheap has ... Read more »

Best streaming device for your TV in 2021

When it comes to finding the best streaming device for you – be it a streaming stick, dongle or dedicated media player – there’s more choice than ever. What’s more, ... Read more »

Here's why Nasscom has partnered with UK government, UK India Business Council

IT industry body Nasscom on Thursday said it has collaborated with the UK Government‘s Department for International Trade (DIT) and the UK India Business Council (UKIBC) to address the digital ... Read more »

Climate change: Huawei and ZTE dial into China's carbon neutrality call with low-emission technology using renewable energy

As China aims to achieve carbon neutrality by 2060, telecoms giants Huawei Technologies and ZTE are leveraging technologies to help customers and suppliers cut their carbon footprint and embrace renewable ... Read more »

The best Android games 2021

We’ve tested and rated all the best games for Android, covering all genres, and rounded them all up right here. No more botched console ports or dreary puzzles – here ... Read more »

From Facebook to Twitter, Big Tech sees social commerce driving sales growth

Led by Facebook, social media platforms from Alphabet’s YouTube to Snap Inc and Twitter are investing heavily in shopping features to drive revenue growth, a major theme that emerged during ... Read more »

Indian founders say yes to no-code tools

With the growing pace of digitization, low-code, no-code platforms are allowing businesses and brands to quickly create and deploy new products. Read more »

An Indian firm facing 1,738 cyber attacks a week on average, claims report

An organisation in India faced cyber attack 1,738 times on average per week in the last six months compared to 757 attacks per organisation globally, a report showed on Thursday.The ... Read more »

NextDC snaps up $124M Western Sydney DC site

Data centre operator NextDC has secured a new data centre site in Western Sydney worth approximately $124 million.  Viewed as a long-term expansion opportunity by the operator, the proposed facility ... Read more »

Lenovo ThinkEdge SE30 and SE50 with Intel Core vPro processors, up to 32GB RAM launched in India

Lenovo has launched its new portfolio of embedded computers in India. The new computers belong to the ThinkEdge series and it now has two new members — ThinkEdge SE30 and ... Read more »

Apple's Siri becomes target of nationalist netizens after glitch caused it to skip Chinese Olympic gold tally

Apple’s virtual assistant Siri felt the wrath of Chinese social media users this week after the artificial intelligence system was unable to read out China’s tally of gold medal wins ... Read more »

Meal kit service HelloFresh is opening an online grocery store

HelloFresh, best known for its meal kit delivery service, is opening an online store where consumers can scoop up groceries along with their meal kit. On Thursday, the company unveiled ... Read more »

Get a lifetime of unlimited online privacy and security for just $28

We already give away so much of our data freely to the companies we deal with that we are vulnerable if their security is breached. And, unfortunately, that is happening ... Read more »

Imperva to ditch direct sales in favour of full channel model in Australia

Cyber security solutions vendor Imperva has decided to hedge its bets on an almost 100 per cent channel model in Australia, 12 years after first launching in the market.  As ... Read more »

Huawei to unveil flagship phone as impact of US crackdown deepens

Delayed P50 launch comes as the company struggles to secure chips. Read more »

This startup offering one-stop solution for your storage problems is coming to the UK with €52M funding

The shortage of space for storage in urban homes has been the grim reality of many cities in Europe. The development of urban self-storage, inner-city, close-meshed and decentralised micro-logistics hubs ... Read more »

Public sector transformation – how customers get from manual processes to low-code results

Modernizing processes doesn't have to cost years or excessive amounts of money. Christoph Garms shares three examples of lessons learned from digital transformation in the public sector from Neptune Software. Read more »

Hefei grew its GDP 2,600% in 20 years to become one of China's fastest-growing cities

The bold strategy to invest in three companies led to explosive growth in Hefei’s jobs, GDP, and return on investment. Read more »

These are the top exploited vulnerabilities since 2020

A joint advisory issued by cyber agencies in Australia, the United States and the United Kingdom has detailed the top cyber security vulnerabilities exploited by malicious cyber actors since 2020.  ... Read more »

Harvard? Galileo Project? ALIENS?!?! Here's what you need to know

Can we find alien technology? That is the ambitious goal of the , launched this week by Harvard astrophysicist Avi Loeb with substantial private financial backing. The project is far ... Read more »

AMD's chip supply will remain tight through 2021

AMD’s CEO expects the vendor’s supply of chips to be “tight” throughout the remainder of the year, but are expected to ease up in 2022. Dr. Lisa Su, speaking during ... Read more »

NASA's Insight Lander Tells More About Mar's Crust, Core Using Marsquakes Data

NASA’s Insight lander has gathered information about the core and other internal components of Mars. The scientists have now a clear glance as to what the deep interior of the ... Read more »

Ray-Ban Smart Glasses to be Facebook's Next Product: Mark Zuckerberg

Ray-Ban smart glasses are the next product in Facebook’s agenda, according to CEO Mark Zuckerberg. The announcement was made by the Facebook CEO during the latest earnings call. It was ... Read more »

Creator incubator Ju lands angel round, uses blockchain to cultivate internet celebrities

The company trains and markets short-video content creators across social channels like Douyin. Read more »

What is Mitre D3FEND? A new knowledge graph for cyber security defenders

D3FEND is a new schema released by Mitre last month to establish a common language to help cyber defenders share strategies and methods. It is a companion project to the ... Read more »

Crypto startup Vauld raises money from Peter Thiel fund, others

Representative image. Vauld, which wants to be a bank for cryptocurrency holders, said on July 29 that it has raised $25 million in Series A funding led by Valar Ventures- ... Read more »