Bitcoin becomes more anonymous and faster through updates

by time news

Mor privacy, less storage requirements and falling costs: The scene around the digital currency Bitcoin has big plans for the first major upgrade since 2017. The extensive change called “Taproot” (tap root) had already been proposed in January 2018. Even then, the goal was more anonymity and efficiency. Now the new protocol is actually being introduced at the end of a complicated voting process.

An important part of Taproot is the introduction of the so-called Schnorr signatures. These were developed by the Frankfurt mathematics professor and encryption expert Claus Peter Schnorr and are intended to provide more privacy with Bitcoin.

So far, the Bitcoin network has been set up in such a way that virtually all transactions in the blockchain’s ledger can be viewed publicly, explains Philipp Sandner, Bitcoin expert and professor at the Frankfurt School of Finance & Management. “These Schnorr transactions enable a bundle of transactions with a single signature. As a result, it is sometimes not always possible to see who authorized an individual transaction or a bundle of them. “

“A disadvantage in terms of transparency”

That brings efficiency advantages, but also ensures that a transaction may be running where you don’t always know immediately who is behind it. “That is a disadvantage in terms of transparency. On the other hand, it also enables higher transaction throughput, new types of transaction approaches and also less storage space. “

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