Bitcoin has undergone a long-awaited upgrade that seeks to enhance its privacy and scripting capabilities.
Taproot, the first major change to Bitcoin since SegWit (Segregated Witness) in 2017, was first proposed in 2018. The upgrade was locked in back in June and has now been activated at block 709,632.
Taproot enables MAST, which helps make smart contracts more efficient and private by only revealing their relevant parts during spending. It also aims to improve the privacy of the Lightning Network by making channels look like usual Bitcoin transactions.
Previously, market intelligence firm IntoTheBlock had mentioned Taproot as a potential catalyst for a BTC rally.
Ninos Mansor, partner at Arrington XRP Capital, published a report last month on Taproot saying that it will redefine the largest crypto by market cap.
“The upgrade could be a macro turning point for evolvability and innovation, merging the best of post-Segwit conservatism with the energy of new beginnings. It is a meta-upgrade, a chance to redefine what it means to contribute to Bitcoin, whether one is a miner, developer, or full node.”
At time of writing, a little over half of all nodes are signaling support for the upgrade. Segwit, Bitcoin’s last major upgrade, took over two years to gain 50% adoption, according to Woobull.
Bitcoin is trading at $65,370 at time of writing.
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