Key takeaways
- Bitcoin’s Taproot upgrade is to begin on November 14.
- Privacy, efficiency, and programmability will all benefit from the long-awaited improvement.
- MAST (Merkelized Abstract Syntax Tree) will be deployed by Taproot, making it more difficult to track and analyze Bitcoin transactions.
Over 90% of Bitcoin miners have given their approval for an update in November. The upgrade, called Taproot, would improve the network’s efficiency and anonymity, perhaps causing a significant increase in Bitcoin’s price.
Taproot comprises three Bitcoin Improvement Protocols (BIPs) that will give the network more privacy, better smart contracts, and lower transaction fees. Taproot was formally established in June of this year when 90% of the Bitcoin network’s miners agreed to push the idea forward.
MAST (Merkelized Abstract Syntax Tree) will be introduced by Taproot, making it more difficult to track and analyze Bitcoin transactions. It accomplishes this by blurring the lines between complicated and fundamental transactions, such as multi-signature and Lightning Network transactions.
One of the elements fueling Bitcoin’s market spike this week was likely anticipation of the upgrade. On Tuesday and Wednesday, the price of Bitcoin reached all-time highs, with a market value of $68,521 and $69,044 on those days, respectively.
“This is a revolutionary moment for Bitcoin,” claimed Don Guo, CEO of Broctagon Fintech Group, told Coindesk.
Taproot has several advantages, one of which is that it will provide the bitcoin network with a more user-friendly intelligent contract protocol. Smart contracts are programs that run when specific circumstances are satisfied and are stored on a blockchain. On the bitcoin network, smart contract functionality is currently an expensive and time-consuming procedure.
While some analysts predict a similar price trend this time, others feel the surge following Taproot will be minor, given how far the cryptocurrency has already risen and how long developers have worked on the upgrade.
“There might be a limit to how much more upside you can get from bitcoin,” as per Daniel Cawrey, COO at digital asset investment firm Cypherpunk Holdings Inc., and a former CoinDesk reporter.
It’s uncertain whether Saturday’s upgrade will result in higher highs or whether the frenzy around Taproot has peaked.
