Bitcoin has undergone a long-awaited upgrade that seeks to enhance its privacy and scripting capabilities.
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.
“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.”
Bitcoin is trading at $65,370 at time of writing.
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