Taproot is intended to increase the privacy of Bitcoin significantly. This approach uses Multi-Signatures, to be exact, on Schnorr-Multisigs.
In the Worries about price trends, ETFs, and the Grabenk(r)battle between Bitcoin and Bitcoin for Cash to forget that Bitcoin is designed also technically more. Beyond these public debates, the developers have not only enabled Segregated Witness, or the Lightning Network. It is working on things like Smart Contracts, Tokenized Assets or the privacy on the Bitcoin Blockchain.
The latter is something that is very important. The privacy of being in prison is one of the Ideals of Cypherpunks, for the Second, you can only increase the fungibility of Bitcoin. Also Bitcoin-maxima lists must admit that on anonymity, put the end of crypto-currencies like Monero currently have the edge. Understand that the Bitcoin Community would like to catch up.
Taproot – With Multi-Signatures to more privacy
At Taproot, there is an idea presented by Gregory Maxwell by the end of January in the Bitcoin-developers-Mailinglist. The core of the idea, the use of Multi-Signatures. Multi-Signatures we have discussed in connection with Schnorr signatures short. The idea is that transactions appearance in connection with a previously generated multi-signatures in the Blockchain as other transactions.
The concept is described as follows: let’s Say Alice has the Public Key Pub_A, and Bob the Public Key Pub_B. We can. this results in a Mutisig C = Pub_A + Pub_B For this and a time lock script a combined Public Key is generated. The time lock script is in the first line, like in the case of Payment Channels available, to be left to Alice and Bob, if your Agreement falls apart, after a specified time access to your Funds. Alice and Bob can now make a 2/2 signature over P, i.e. a Multi-signature, which requires both consent. With this multi-signature transactions may not be initiated, you know, whether Alice or Bob were behind it. On the Blockchain, only the combined Public Key is stored.
By such a development would not only improve the privacy of Alice and Bob. Similarly, the transaction history of the Token on the Bitcoin Blockchain would not be so transparent, what would be an important step forward with respect to fungibility.
Schnorr signatures: The stumbling block to Taproot
If the Taproot is actually the solution to a Central Problem of Bitcoin is the question: Why didn’t you implemented this solution? The Problem is that you need for Taproot Schnorr-multi-signatures. Without the Schnorr-multi-signatures can transform multiple Keys in a single Key. In terms of Taproot is waiting for Schnorr.
Although progress on this Front. Since the beginning of July, various developers are working on a Bitcoin improvement Proposal for Schnorr signatures. Similarly, other project ideas, such as Graftroot, MAST or SIGHASH_NOINPUT, the Schnorr-signatures need to exist. Accordingly, we could say hopeful, that this high demand for the new type of signature would speed things up.
The Problem is the prioritization. All of these ideas at the same time is too complicated and fraught with risk. On the other hand, the different projects would each draw a small Soft Fork, and often a Change in the address format. All of the hurdles in front of Bitcoin users ‘ privacy would be apart, especially in the case of Taproot, at least initially.
You realize that the Bitcoin developer Community with respect to Schnorr signatures has more to struggle with logistics because the fundamental problems. Although the developers are known, partly for security, partly because of difficulties in a consensus determination, not just for quick decisions, but it does in the Community very much, so that you can be curious, when Schnorr, Taproot and the other projects will be real.