New Bitcoin Upgrades Could Offer More Scalability
Last month, another milestone was attained as the Schnorr Signature and Taproot Softfork were proposed. It is considered one of the most remarkable Bitcoin upgrades since it was established ten years ago. It is a soft fork upgrade proposal that includes another digital signature scheme known as ‘Schnorr,’ and a complimentary upgrade known as Taproot.
Despite being a pull request, it was a distinctive development because it is now a formal proposition as a Bitcoin Improvement Proposals [BIP]. The purpose of the upgrades is to promote scalability, to take in users transacting every day, and likewise improve privacy.
When compared to DAS, the Schnorr signature scheme exhibits more simplicity and efficiency. Besides, this signature scheme does not have many burdensome security assumptions.
According to the CEO of Blockstream, Adam Back, on the latest edition of Crypto Voices podcast, the technology has been improved many times and offers more flexibility. He further mentioned the existence of amazing use cases for multi signatures but the shortcoming remains the cost. Hence, the ability of Schnorr to hugely remove the cost will make people more comfortable with multi signature configurations, he added.
Within the previous year, there has been an increase in the number of Bitcoin stored by multi-sig technology P2SH addresses; hence, this validates the notion that users would be more comfortable with improvement protocols and reduced costs.
BitMEX Research provided cautious estimations regarding Schnorr adoption: despite the network usage at the moment, hundred percent Schnorr adoption only brings about a 13.1 percent network capacity increment and the likely space savings and network capacity gains could be more than this in the future.
Other cryptos have also introduced such features. In 2019, Bitcoin Cash’s network was able to complete a new upgrade by the implementation of two new features (Segwit recovery and Schnorr signatures) at block 582680.
Featured image courteys of Shutterstock. Source: Cryptopress.