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Taproot

Bitcoin upgrade (2021) that improves privacy, efficiency and smart contracts.

Definition

Taproot is the most important Bitcoin upgrade since SegWit, activated in November 2021. It implements BIPs 340, 341 and 342. Its main improvements are: Schnorr signatures (more efficient and composable than ECDSA), MAST (Merkelized Alternative Script Trees, which enable more private complex contracts) and Tapscript. In practice, Taproot makes multi-sig transactions indistinguishable from simple ones, improving privacy, and enables more complex smart contracts on Bitcoin.

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