‘’Digital Gold’’ is an evergreen narrative for Bitcoin and people do have expectation over it in the long run but not temporarily. But there is one thing that keeps the desire of bitcoin to be like gold far away, which is that gold is always gold in a vault or in the ground whereas bitcoin is an evergreen technology that keeps updating over time.
Now Bitcoin lovers and the curious people are waiting to see what changes and progresses are coming with the Taproot update.
Taproot is coming to light with some changes if Bitcoin and these changes include addition of data efficiencies, updates to multi-signature transactions and many more. These updates will result in a number of changes including easing supply-side pressure. Through pushing updates to multi-signature, the privacy of bitcoins held in custody will be improved. It’s very good news to organizations involved in multi-signature transactions. As a result of the advancement in privacy it is not possible to distinguish one Taproot transaction from other Taproot transactions.
Critics targeted the issue of anonymity and always throw their comments about criminals taking advantages of that, but they never think that anonymity increases privacy factor. With multi-sig growth at anemic level, is there really demand to justify adding these features? – remains a question. Whether you are a person or financial institution cannot be identified in Bitcoin network.
Though multi-sig plays a vital role for ensuring security, and so its limitations keep people’s attention away from adoption. To bring an increment in adoption, the Taproot update is coming with some amazing improvements in multi-sig. Who knows the update would improve custodial services and make direct-custody forms of investment a bit more mesmerizing? The opposite can also be seen down the road.
An update is not always a blessing rather sometimes it invites curse for the technology. There lies risk inherent to an update. Users will still be able to use pre-Taproot transactions even after the implementation of the Taproot update. It is expected that, development of applications on top of Bitcoin will be easier after the update. As we know backward-compatible updates are more preferable to Bitcoin developers, so it is unguessable what will be happened after the update. As a huge number of miners paid their approval on Taproot update, Taproot will probably be enacted by the bitcoin network.