Thread by @AnitaPosch

1/ A thread to understand taproot and its #Bitcoin improvements

“It doesn’t matter if you have nothing to hide. Because privacy isn’t about something to hide. #Privacy is about something to protect. And the thing to protect is a free and open society.” - Edward @Snowden

2/ Taproot is a very important update to the Bitcoin Core software. It is a backward compatible soft-fork, which might be locked-in in a few weeks. Locked-in means that the changes to the software will be activated automatically in November.

3/ First the miners need to signal their readiness. Those signals are looking very promising at the moment. 1815 blocks within a period of 14 days have to signal for taproot. If they do, taproot will be activated in November. There is no turning back.

4/ The lock-in can not be taken back. The next signaling period starts in a few hours.

#Taproot will bring three big changes: it improves scalability and privacy and sets up foundational scaffolding for future Bitcoin software improvements. @hampus_s

5/ With Taproot all types of Bitcoin transactions will look the same. Cashing out from the #LightningNetwork for instance will look like a simple transaction between two parties although there might be thousands of payments included in one lightning channel.

6/ Taproot can hide complex scripts and show only the branch of the script that has been executed. This makes Bitcoin transactions cheaper (less data, less fees) and more efficient for everyone. Taproot introduces new address types starting with ‘bc1p’.

7/ The whole implementation process will take some years until all wallets and exchanges update their software to are support the new address format.

It’s a very important step for Bitcoin, because it strengthens core properties: privacy, neutrality, and open access.

8/ Even more: Taproot makes it more difficult for regulators to intervene, which secures the financial inclusion of billions of people without IDs, status or wealth.

9/ If you like that kind of content, feel free to subscribe to my #Bitcoin podcast with the best stories and educational resources.
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