On June 12, during the Bitcoin (BTC) mining operation, a transaction was mined in the Slush Pool block 687285, which included the activation signal for the Taproot update. The specific block was 1816 to enable the signal to activate the main root by the BTC miners during the difficulty period, which lasted from May 30 to June 13.

With 2016 blocks generated in each difficulty period, the intersection of 1816 blocks with a Taproot activation signal corresponds to the 90% signal limit required to enable refresh. The event meant that Taproot, the first Bitcoin protocol update in over four years, is set for an activation phase expected in mid-November.

In addition to the end of the signal period, which lasted about six weeks over three consecutive periods of difficulty, block 687285 also brought a new milestone for the Bitcoin update that has been in development since 2018. In addition to automatic activation, which is happening towards the end, BTC officials said last year that the focus should now be shifting towards building wallets and other ecosystem apps that can take advantage of the advanced programming capabilities that Taproot has to offer.

What is Taproot?
Before diving into what Taproot is and how it works, it might be important to provide at least a general explanation of how Bitcoin transactions work. When sending BTC from one wallet to another, the sender’s public address uses the private key to create a unique cryptographic signature.

This cryptographic signature contains the necessary permissions that serve as proof of any contract to verify the transaction that the sender actually owns the money being sent and thus fulfills the precondition. Different conditions of use can be created for unused transaction outputs (UTXOs).

When UTXOs are used, it becomes necessary to disclose all data about the conditions of consumption – both the data that was met and the possible conditions that could be met – a function that has significant data usage and privacy implications. Taproot is an update designed to address this issue by hiding the terms of use other than those specified in the script branch agreed by the parties to the transaction.

Speaking to Cointelegraph, Riccardo Casatta, a one-time bitcoin developer and employee at Square, outlined the core premise of Taproot and said, “The Taproot update includes a number of improvements, the most important of which is long-term privacy improvements. … According to Casatta:

“One of the misconceptions we have today is that the use of bitcoins is largely private, while transactional activities actually leave a lot of traces on the blockchain. For example, bitcoin is sent to different addresses – for example, with ‘1’, ‘3’ or ‘bc1’, depending on the version and the smart contract behind it. This is a problem because it reveals user spending. ”
With Taproot, it becomes possible to combine the public keys of all devices involved in a transaction to create a unique key. By creating a new withdrawal called Pay to Taproot (P2TR), it is possible to bind money production terms to a single public key instead of a single key hash or scenario that requires full account of all the terms of use built into the UTXO.

This merging of multiple signatures into one aggregator signature is based on Schnorr signatures. Taking advantage of the linear nature of Schnorr signatures, Tabrut states that it would be possible to make multiple signatures (multi-signatures) different from their counterparts with a single signature, or, as Casatta put it:

“With root, different terms of use can look the same in most cases, which is good because it reveals less information about users and improves efficiency.”
Almost unanimous support for miners
As Cointelegraph previously reported, Bitcoin’s Taproot update reached a decisive 90% consensus among mining nodes on June 12. In fact, the operation received almost universal support from miners, with all well-known mining pools referring to Taproot.

Slush Pool started the process back in May and managed the first block of the transaction using the Taproot activation signal. Perhaps fittingly, the fifth largest Bitcoin mining pond in the hashish distribution was also raised by the miner who was in charge of blocking the campaign.

Despite the slowdown in the start of the signaling period due to the Labor Day celebrations in China, the consensus among miners to support the advancement began to reach significant proportions in the second period of difficulty. This almost unanimous support solidified the commitment of miners even before the planned integration of the update into Bitcoin Core in late 2020.

Source: CoinTelegraph