The highly anticipated Bitcoin Taproot Softfork will start in a few hours.
There’s so much excitement about Taproot’s Bitcoin Improvement Proposals (BIP) as it’s the biggest upgrade in about four years since SegWit. However, it’s also important to understand that the soft fork doesn’t magically improve the capabilities and privacy of the network overnight.
Bitcoin programmer and technical expert Jimmy Song explained what will happen when the update kicks off. He said in a recent interview with Natalie Brunell:
“Many wallet providers still have to integrate taproot. So it will take a little time, and the benefits will not be seen in years. Not like immediately. “
However, it does indicate that some changes would occur right after the update. As part of the changes, Taproot is expected to also improve Bitcoin’s smart contract functions while bringing more privacy to the network.
“And you can very easily outline all of these conditions. This makes … the ‘composability of the smart contract’ easier with Taproot. “
In addition, Song used the analogy of “house locks” to comment on the increased security according to Taproot.
“I would say that nobody can tell what kind of lock you have on your house.”
Another major change could be cheaper transactions on the blockchain in “certain use cases”. Song stated that users can end up paying slightly lower fees as they take up less space in the chain. But that won’t always be the case.
“Paradoxically, in some other cases, you’ll pay a little more because it actually takes up a little more block space. But overall it’s a gain in efficiency. “
And all of these changes require miners’ consensus. What Song describes as “an enormous amount of work”. But many UI improvements could be on the way with Taproot. And according to the song, it will take a few “years”.
“But yes, rest assured that this is going to be an interesting upgrade, and it will add a lot more fail-safes for the kind of users who shoot themselves in the foot.”
Can Bitcoin Taproot make way for MooNovember?
The crypto trading company QCP Capital wrote in a Telegram update:
“The BTC price was undoubtedly supported by the upcoming Taproot upgrade …”
The company added that since it “will improve a number of key functions”, QCP Capital “will hold BTC long on this major event”.
It’s also worth noting that the crypto universe recently hit a market cap of $ 3 trillion. And shortly thereafter, Bitcoin was hovering near a new ATH of $ 69,000 before retreating. At the time of going to press, the token was stable above $ 64,000.
However, Bitcoin’s brief spike due to high inflation in the United States found that liquidations drove prices down.
Even so, analyst PlanB keeps its price estimates for Bitcoin close to $ 135,000 in December.
As you know, the S2F model predicts an average of around $ 100,000 for this halving cycle (white line). I downgraded that to “$ 100,000 final Dec 2021” because we should be above that average by the middle of the cycle to get an average of $ 100,000. My floor model (not S2F) predicts a closing price of $ 135,000: roughly in line with the S2F model. pic.twitter.com/Oel7HmsmPr
– PlanB (@ 100 trillion USD) November 11, 2021
Comments are closed.