Tuesday, July 27, 2021

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    Only three bitcoin wallets have announced plans to adopt Taproot so far

    According to bitcoin wiki, the hardware wallet Trezor and the digital wallets Wasabi and Sparrow, are the only ones that currently plan to add support for the scalability and privacy solution, Taproot. On the other hand, few nodes have updated to support Taproot, which would present security issues.

    In the listing of hardware wallets appear Trezor Suite and Trezor Electrum, of rest, other cold wallets such as Ledger, Coldcard and Archos, still do not seem to adjust to the new improvement for Bitcoin.

    Regarding software wallets, apart from Wasabi and Sparrow, the list shows that BlueWallet, Samourai, Trust Wallet, Muun, among others, have also not added support for Taproot.

    When it comes to payment processors for Bitcoin, the only one that appears ready for Taproot is BTCPay.

    Among the exchanges that appear on the list and that have not yet adopted the new solution are Bitfinex, Coinbase, Gemini, Hodl Hodl and LocalBitcoins.

    Full Taproot adoption benefits the network

    The Bitcoin community approved by consensus the implementation of Taproot from next November, through Speedy Trial (ST). This mechanism sought to determine if miners were ready for Taproot activation, as reported by CriptoNoticias.

    Taproot, as explained in this medium, will increase the privacy of BTC shipments by making single-signature and multi-signature transactions indistinguishable when parsing the blockchain.

    The adoption of Taproot by Bitcoin wallets, service providers and nodes is important for users to benefit from this implementation.

    However, up to this point, only 26% of bitcoin nodes has been updated to be compatible with Taproot, which means that the rest, you have 4 months to implement the new solution.

    According to Luke Dashjr., editor of proposals for improvement (BIP) in the Bitcoin code, it is important to update the nodes so that Taproot works correctly, as reported by CriptoNoticias.

    Additionally, it is expected that with Taproot, both single-signature and multi-signature transactions will look similar in signature, which would make them indistinguishable in a blockchain analysis.

    Consequences of not accepting Taproot

    For his part, the specialist Rusty Russell, considers that not complying with the adoption of Taproot, could activate attack vectors on Bitcoin.

    That is, “if they are not updated and 50% of the mining power is not updated (it not only signals, but updates its nodes), a miner could deliberately mine an invalid Taproot transaction in November and split the network,” Russell explained.

    Although he considers the chances of an attack occurring to be low, he recommends that users “should not use Taproot until they are convinced that the vast majority will enforce it.”

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