What is Taproot and How Will it Benefit Bitcoin?
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What is Taproot and How Will it Benefit Bitcoin?

By Interdax | interdax | 11 Mar 2020

In the second installment of our series on BIPs 340–342, we’ll see how Schnorr lays the foundation for Taproot and explain the benefits of BIP 341.

Read part 1 ‘How will Schnorr Signatures Benefit Bitcoin?’ here:

What is Taproot (BIP 341)?

BIP 341 is the second part of the Schnorr/Taproot/Tapscript proposal and extends on Schnorr’s functionality to enable greater scaling, efficiency and spending policy privacy.

As explained in our first article on the three-part proposal, Schnorr enables bitcoin multi-signature transactions to appear as if they were standard (i.e., Pay-to-Public-Key-Hash) transactions on the blockchain.

Taproot (BIP 341) when combined with Schnorr takes this even further, enlarging the group of transaction types that appear to be the same set to include:

    1. Use of P2PKH and P2WPKH, i.e., single spends,
    2. n-of-n spends with MuSig or equivalent (similar to current use of P2SH and P2WSH 2-of-2 multi-sig),
    3. k-of-n (for low values of n) using the most common k signers, and
    4. Lightning Channel closes, atomic swaps and other contract protocols that can sometimes result in all parties agreeing on an outcome.

These four cases categories represent a majority of Bitcoin’s transactions to date. No matter how complex a contract is, Taproot enables the cooperative outcome to appear the same as single key spends on the blockchain. The remaining scripts that outline other contract outcomes are not added to the blockchain, freeing up space for more complicated transactions in a given block.

Before explaining how Taproot works, it is useful to know that it is an implementation of the MAST protocol — which is detailed below.

Read more here: https://medium.com/interdax/what-is-taproot-and-how-will-it-benefit-bitcoin-5c8944eed8da?source=friends_link&sk=c7fa27c66217e29acc30ccf1ec850694

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