Taproot upgrade: 1st major upgrade in 4 years for BTC| what now?Any feedback and suggestions would help in further improving the analysis! If you find the analysis useful, please like and share our ideas with the community. Keep supporting :)
Quick glance: In our last tutorial, we discussed the use of MACD in different time frames in crypto-trading. In this tutorial, we will discuss the Taproot upgrade: the first major upgrade for BTC in 4 years!
Let us delve deeper into the Taproot upgrade and why it was so badly needed!
The Taproot upgrade for BTC would allow smart contracts to be run efficiently and cheaply! As of now, smart contracts are usually run on the Ethereum network because of the higher efficiency. However, with the Taproot upgrade, Bitcoin has the potential to elevate itself and integrate with mainstream finance.
Taproot upgrade for Bitcoin would allow smart contracts to take up lesser space on the network. Technologically speaking the Bitcoin network currently uses the 'Elliptic Curve Digital Signature algorithm.,' which occupies more space. It will be switched over to the 'Schnorr signatures' that will make the simpler transactions potentially indistinguishable from complex transactions. It translates into greater anonymity in the network while maintaining transparency.
Apart from the efficiency aspect, the ability to run smart contracts cheaper is what will be revolutionary. Currently, running smart contracts on Bitcoin's core protocol layer is not exactly feasible. It is quite expensive and time-consuming, thereby rendering it almost useless. Many experts suggest that smart contracts would be one of the key selling points for Taproot. To put things into perspective, smart contracts can be used for almost any trivial financial transaction such as paying utility bills to pay rent, among others.
The impact on the investors would likely be huge. Any long-term investor knows that the true potential of their asset would come from practical use cases that are adopted by the masses. Bitcoin's taproot upgrade might just be the key element that would propel it into mainstream finance. The bottom line is the kind of revolution that the Taproot upgrade might bring for Bitcoin is phenomenal.
