Bitcoin just had a major security and privacy update

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The world’s oldest and most popular cryptocurrency has received its first update in several years and with its new Taproot code upgrade, Bitcoin will now offer better security and privacy.

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Bitcoin’s taproot took effect over the weekend when the cryptocurrency reached block 709,632, marking its first major upgrade since 2017.

By introducing a new type of signature called Schnorr signature, Taproot will help make bitcoin transactions more private, efficient and cost less. At the same time, however, this new upgrade will make it easier to execute smart contracts on the blockchain using bitcoin.

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Rival cryptocurrency Ethereum has gained notoriety in recent years due to the fact that it is easy to create smart contracts using its blockchain. While Ethereum will still be the go-to cryptocurrency for smart contracts, Bitcoin’s taproot upgrade will help bridge the gap between the two to create smart contracts.

taproot upgrade

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According to a new report from CNBCTaproot Upgrade is a collection of three different upgrade offers for bitcoin.

In addition to helping to facilitate smart contracts on bitcoin’s blockchain, the new upgrade will increase privacy for some transactions as Schnorr Signatures will allow for multi-signature transactions. These transactions, which involve multiple addresses, will now appear as a standard, single transaction, providing greater anonymity and privacy.

Scnorr signatures will also reduce the amount of data required for multi-signature transactions, despite the fact that they are more complex to process than standard transactions. Not only will this make transactions cheaper, but with less data involved, transactions will become more efficient in terms of how much energy and time is used to complete them.

Now that bitcoin has received its taproot upgrade, the cryptocurrency is likely to see a new wave of innovation as it can be used as an alternative to ethereum by holding together smart contracts.

we have also painted best bitcoin wallet

via CNBC

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