- Schnorr Signature Update and Other Updates: Complete Gamechanger
The new taproot update of Bitcoin is the latest upgrade of the cryptocurrency since SegWit upgrade in 2017. The new upgrade will ensure that Bitcoin transactions have more security, privacy and scalability. The users will now have to pay low fee for complex transactions and will also be able to enjoy enhanced wallet functionality. The new update of Bitcoin can prove to be a gamechanger for the cryptocurrency in the coming time.
Schnorr Signature Update and Other Updates: Complete Gamechanger
Previously, ECDSA (Elliptic Curve Digital Signature Algorithm) signatures were utilized in Bitcoin, in ECDSA, a private key was used by the users to sign their transactions and approve it, to send to a different location.
The new upgrade of Bitcoin, Taproot update includes three upgrades, but the most significant and core upgrade is ‘Schnorr Signature’, which is a multi-signature feature. In this update, multiple user addresses public key gets combined to form a single aggregate public key. This completely eliminates the requirement for multiple public keys and the complexity in the transactions is reduced, which otherwise are a reason for creating a bottleneck in the network. In the new update, Schnorr Signature, public key and single digital signature will be required to be approved by the transaction verifier to approve that all the parties involved in the transaction have signed the transaction.
Schnorr Signature upgrade will ensure that all the transactions are being carried out more securely and with more privacy. It will also ensure that the Bitcoin network is more scalable and efficient, as multiple signatures are combined form one.
Apart from Schnorr Signature, MAST (Merkelized Abstract Syntac tree) is another update in Taproot. This update ensures privacy as all the transactions would be difficult to trace and analyze. This would also provide support to the Schnorr upgrade so that no difference could be identified between multi-signature transactions and simple ones.
Disclaimer: The article should not be considered as any financial advice. It is advisable to conduct thorough research before investment.
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