Crypto exchange Kraken says that an upgrade for Bitcoin (BTC) coming in November is “one for the ages.”
In Kraken Intelligence’s latest report, the exchange explains that Taproot – which is comprised of three Bitcoin Improvement Proposals (BIPs) – will revamp multiple aspects of the world’s biggest crypto by market cap.
“Taproot substantially improves user privacy, network scalability, and the fungibility of all Bitcoins. Users will enjoy cheaper transaction fees and the ability to conduct multisig (multi-signature) transactions and create complex smart contracts with the same efficiency, low fees and privacy as single-sig transactions.
Taproot is arguably the most significant Bitcoin upgrade to date, setting the stage for massive innovation and adoption.”
Kraken also goes into some detail about how Taproot could improve privacy for Bitcoin users.
“Taproot’s enhanced user privacy and transaction efficiency benefits are two sides of the same coin. The upgrade means that details about a user’s unexecuted spending conditions are not revealed, resulting in improved privacy when transacting on the network and a lighter data load on the blockchain.”
The crypto exchange says that few understand the potential impact of the Taproot upgrade and that it could pave the way for a new era for Bitcoin once it goes live later this year.
“The upcoming Taproot upgrade is significant not just in its technical changes, but in its implementation process. Some believe that Taproot will set the operational foundation for how Bitcoin protocol upgrades are implemented in the years to come.”
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