Bitcoin (CCC:BTC-USD) holders are celebrating a major upgrade that just hit the network. The Taproot upgrade is bringing some big changes to the network for the first time in years. And, it will hopefully bring some more bullish optimism to the network. But what is the BTC Taproot upgrade? And what exactly does it spell for investors? Let’s take a look.
Taproot is finally a reality on the BTC chain after a long waiting period. The network is using Taproot to help heighten security on chain, and it is bringing some highly necessary new capabilities along with it. Here’s everything you need to know as the upgrade goes live.
BTC Taproot Upgrade Brings First Changes to Bitcoin Since 2017
- The BTC Taproot upgrade is the first upgrade implemented on the network since 2017. That last upgrade saw the network add layer-2 scaling.
- Taproot was first proposed in early 2018, making this event a year’s long wait for Bitcoin bulls.
- The reason the upgrade, delivered as a soft fork, took so long is because of the deployment method, Speedy Trial.
- With a Speedy Trial deployment, 90% of miners have to reach consensus on the activation of the upgrade.
- Upon reaching this 90% consensus earlier in the summer, the soft fork finally occurred on Sunday, making the upgrades fully live on the network.
- Unlike previous upgrades and forks, the BTC Taproot upgrade has nearly full support from the community. Many see it as a natural stepping stone for the network’s development without bringing drastic changes.
- The upgrade sees a new type of smart contract implemented on the network, “pay to Taproot.”
- The upgrade will also help make contracts slightly more secure, making complex, multi-signature transactions indistinguishable from simple transactions on the ledger.
- While security and fungibility is one smaller part of the picture, focus seems to fall largely on the upgrade’s potential for the future of smart contracts on the network.
- Of course, another major draw to the upgrade is the fact that it shows Bitcoin moving. After taking years to finally get a new upgrade under its belt, it seems investors and developers alike find Taproot to be a crucial step for showing investors that the network is becoming more robust.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.