Bitcoin Upgrade Finally Approved
By Space Coast Daily // June 28, 2021
Finally, Bitcoin is set to be upgraded, which is a major thing in the crypto world. Miners around the world come to a consensus and this is believed to have quite some impact in the world of cryptocurrency.
The upgrade, which is meant to be implemented in November, is referred to as Taproot. According to experts, the major focus of this upgrade is efficiency and enhanced privacy for users when they are transacting. With the new changes, investors believe that this could be the key to unlocking smart contracts.
The upgrade is vital in the overall blockchain system. There will be no need to have middlemen in the Bitcoin transactions. All entrepreneurs who are interested in Bitcoin trading will find Taproot to be ideal as the scope and utility will be expanded. This shifts the dynamics in the digital currency world.
The last Bitcoin upgrade happened in 2017 and was known as the Last Civil War. This came with its fair share of challenges, with a couple of contentious issues that divided the miners into different groups.
What stands out with the Taproot upgrade is the fact that it has enormous support across the globe. This is attributable to the fact that there are numerous improvements that have been suggested to the code. Miners and Bitcoin investors are optimistic that the upgrade may boost the overall acceptability of the coin in various markets.
What Does the Bitcoin Upgrade Entail?
According to the experts, the major change that comes with the upgrade revolves around digital signatures. This aims at creating a trail for every transaction that one makes using Bitcoin. Currently, the Elliptic Curve Digital Signature Algorithm is commonly used in cryptocurrency transactions.
The signature is created using a private key and will have full control of the digital wallet. Primarily, this is a security feature that ensures only the rightful owners can spend Bitcoin. The digital signatures have served the purpose but this is about to change.
With the introduction of Taproot, Schnorr signatures will be introduced, which are more advanced and secure. This will offer more privacy and security in that the bitcoindigital transactions with multiple signatures will not be legible.
There will be a significant reduction in the exposure of keys on the blockchain. As such, you can be able to conceal your identity in the crypto world in a better manner. Currently, the digital signatures used can easily translate individual Bitcoin transactions to the public blockchain.
With these new and improved signatures, transactions will be simpler but the anonymity will be watertight. This paves way for smart contracts as traders will take advantage of the agreements, which are live on the blockchain. Smart contracts are convenient and they can be used for a wide range of transactions like registration of vehicles and so much more.
Taproot is an upgrade on Bitcoin that will enhance such contracts by making them simpler and affordable. In a nutshell, the Bitcoin upgrade seems to focus on efficiency, functionality, and improved privacy.
Currently, smart contracts can only be supported by the Lightning Network. This makes it possible for users to activate instant transactions at a very low cost.
However, when using Bitcoin it could cost a little bit more, which does not make it an appealing choice. As such, we can safely conclude that the biggest winners with the November upgrade are those interested in smart contracts. This is set to revolutionize the cryptocurrency market in a big way.
Get Ready for the Upgrade
The Bitcoin upgrade has been approved and will happen towards the end of 2021. Before then, there will be continuous tests happening so as to ensure that everything works according to plan. We can only wait and see how the new system works and the improvements it brings around.