What does taproot do? Taproot is a technological upgrade to Bitcoin meant to change the way Bitcoin code operates to improve privacy, scalability and security. A Taproot related upgrade known as Schnorr Signatures is also set to be. Tap root aims to deal with major concerns like privacy, scalability, and security. Tap root is expected to improve anonymity on the network. Bitcoin’s lack of privacy is expected to get handled with BTC.

Without Taproot, it was possible for anyone to detect transactions which uses complex functionalities, where multiple transactions got created. However, the Taproot upgrade has made it possible to “cloak” all the moving parts of a Bitcoin transaction which will include these features.  Thus, even if the transactions adopts those features, they will appear like a single transaction. This is indeed a major win for Bitcoin privacy advocates.

Taproot can make one wonder if a Bitcoin script ran at all. For instance, when spending Bitcoin using Taproot it will not be distinguishable from a transaction made in a Lightning Network channel, a peer-to-peer transaction, or a complex smart contract.

Anyone monitoring one of these transactions will only see a peer-to-peer transaction. However, the wallets of the initial sender and final recipient will be exposed.

Taproot has now been merged to the Bitcoin Core Library after a pull request that got created by Pieter Wuille.

Taproot will be implemented along Schnorr signatures making signature aggregation possible.  Combined with Schnorr signatures, Taproot might boost efficiency when performing transactions.

If Taproot is good why is the price tanking? It just looks like entry time 50K is incoming. Many say 55K is the last chance.  So, does this mean that the upgrade hurt the price?  The reality is that cryptocurrency transactions are inherently risky, and it is normal for them to rise and fall. After Taproot the market is facing a correction. This just looks like another sell the news situation too. Through ups and downs the BTC community has stood by bitcoin.

Community reaction:  Full transparency has always been the very reason why a lot of people choose BTC. If Taproot is making things private, let’s wait for the first problems with exchanges. If they can’t track bitcoin anymore good enough.

Some feel that BTC needs to remain fully transparent and that privacy should be left to institutions and banks.

Is it that the company controlling liquidity and prices for exchanges are turning the price button again?