Updates to improve the privacy and scalability of the Bitcoin network — Taproot and Schnorr signatures-are embedded in the Bitcoin Core code. The mechanism for activating updates has not yet been defined.
Updates to privacy and scaling of Taproot and Schnorr’s signature were implemented in Bitcoin Core today, according to the version history on GitHub. Once the updates are activated
, more complex transaction types will become easier to use, and network privacy will increase.
The request to include the update code was created in September by developer Pieter Wuille and was tested for more than a month. Only the code of the Taproot offer was checked by more than 150 developers. Schnorr and Taproot signatures, Bitcoin Improvement Proposals (BIP) 340 and 341 are two of the biggest Bitcoin code changes since activation
Segregated Witness (SegWit) in 2017.
The mechanism for activating the two BIPs has not yet been determined. Depending on the chosen method, it may take some time before the code is activated. Schnorr signatures are an alternative to the current multi-signature mechanism, which uses multiple private keys to complete a transaction. Schnorr signatures combine multiple keys into one when making a transaction. This significantly reduces the size of the payment data and helps to unload the network.
Taproot complements Schnorr signatures and offers a new version of transaction outputs and new features for determining the conditions for spending BTC to users. In some cases, Taproot can even help restore access to lost coins. Schnorr and Taproot signatures are useful for users with complex spending policies that typically control large amounts, such as cryptocurrency exchanges.