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What is Report, and what effect does it have on the Bitcoin protocol? Will the bitcoin community undergo a fundamental change in the future? What impact will the Taproot promotion on Bitcoin have on public acceptance and the price of this digital currency? These are the questions that have occupied the minds of many digital currency users with the implementation of the Report promotion on the Bitcoin network.

Bitcoin For many investors represents a store of new, ideal, and attractive value. The potential of Bitcoin to become a store of value has earned it the nickname “Second Gold” and “Digital Gold” for the King of Digital Currencies.

In many ways, Bitcoin is an upgraded version of gold as a store of value. The scarcity of bitcoin is provable, and the storage of value in bitcoin is much less expensive than gold.

However, 5,000 years before gold, gold was known as a tool for storing value, and its fluctuations are significantly less than bitcoin. In addition, gold has industrial uses, and because of its natural beauty, there is always a demand for it.

In the meantime, perhaps the most significant truth that sets Bitcoin apart from gold is that the Bitcoin network is a comparable technology. Gold will remain gold in all cases. It is not possible for your gold to turn silver or lead occasionally or to have an improved version of it. In contrast, the bitcoin network can change. Bitcoin is a scalable technology that can adapt over time to the evolving needs of users, developers and miners.

On June 12, 2021, a significant number of miners announced their support for an upgrade in bitcoin technology called the “Taproot Upgrade.” Depot is a collection of 3 proposals to strengthen network security, privacy, and scalability. This update was successfully implemented on November 14, 2021 (November 23, 1400) in block number 709,632.

The Report is the most significant upgrade of the Bitcoin network since the block capacity increase in 2017 (2017), known as SegWit (SegWit stands for Segregated Witness).

The benefits that this upgrade is expected to bring are as follows:

• Merge all types of bitcoin transaction outputs into a single outlet called Taproot Output, which makes different transactions unrecognizable and improves privacy
• Improve bitcoin programming capabilities (including adding features such as smart contracts )
• Increase data productivity by using a more efficient signature algorithm and better transaction structuring method
• Increased security is due to a new signature scheme that will turn bitcoin into a Chinese block with two signatures.

But there are also risks to this upgrade:

• Acceptance of this update is low, which indicates that Bitcoin users are not interested in adding anything new to Bitcoin;
• Low acceptance rates negate the potential benefits of privacy;
• The new signature design may have quantum resistance less ” ” than the current design;
• There is a possibility that the bitcoin community will split due to disagreements over the promotionReportprot, which is not unlike the controversy over Segwit that to the creation of the bitcoin canceled.

In this Report, with the help of an article published on the Coin Telegraph website. We describe the benefits and risks of this upgrade and examine Taproot will implement this historic upgraded on the Bitcoin network. Knowing this helps gain the proper perspective on Bitcoin (a tool for investing).

What is a Taproot promotion?

Taprootroot upgrade includes three Bitcoin Improvement Proposals (BIPs) available at Github (github.com) at 340, 341, and 342.

In short, Taproot is designed to improve the security, privacy, and performance of Bitcoin. This update accomplishes these goals through the following steps:

Abstract of structured information in the Merkel tree

” Review the information in the tree-structured Merkel ‘or Merklized Abstract Syntax Trees that briefly MAST called. The type of structure and spend bitcoins conditions change. They reduce the number of inputs required, thereby reducing the amount of data needed to verify transactions.

What is the feature of paying to Taproot?

The ” ” feature merges Pay-to-Taproot all bitcoin outputs, regardless of transaction type (Segovite and non-Segovite), creating a single Tepprworktput on the Bitcoin network. This method improves the productivity and privacy of transactions.

Ashnor signatures

In the Reportprot update, ” signatures Schnorr ” replace the current cryptographic signature scheme, called ECDSA. Curve Digital Signature Algorithm acronym means ECDSA Elliptic digital signature algorithm elliptic curve is.

These three BIPs run simultaneously to encourage service providers and wallets to upgrade their software. In this way, this upgrade is accompanied by maximum acceptance, and more users can enjoy its benefits.

What are the benefits of upgrading TeprThe property tries to enhance the usability of bitcoin and expand the available bitcoin market? It isn’t easy cult to quantify the effects of this update; But in terms of quality, its advantages are as follows:

Further development in the field of applications

Smart contracts are automated digital contracts whose contents execution used are written in code or script. Bitcoin is generally associated with smart contracts; Instead, we recognize Ethereum Blockchain with its smart contracts and the development of blockchain decentralized applications that use the arrangements acts.

However, Bitcoin has features that allow it to create native intelligent contracts. The Taproot can schedule Bitcoin transactions for scheduled payment can be made whenever the necessary conditions are, met and the terms of the agreement are fulfilled.

Bitcoin smart contracts are now also used in multi-signature wallets. These are the contracts lightning makes make possible or locks units of bitcoins for a certain period to ensure that these coins are not spent during this time.

The probate is that creating intelligent art contracts in the Bitcoin blockchain is laborious and costly. In addition, if a user wants to submit a complex bitcoin transactive, she must place the script separately in each transaction entry.

When those scripts are executed, all the contract terms will be revealed, including those ones that have not simply been antedated. For this reason, transactions involving bitcoin contracts contain large amounts of data and are not privately viable.

The Report splits the execution of bitcoin scripts into smaller steps, making only the executed hand visible. In the same way, the Report update makes Bitcoin bright contracts more efficient and practical.

Tarot can use the items under the contract’s confidential records, or Discreet Log Contracts (abbreviated DLC ) called to them to improve. These contracts are a new type of Bitcoin blockchain smart contracts.

You may have heard the somewhat embarrassing story of two Bitcoin supporters betting on the outcome of the US election. BTCPay Serve co-founder Nicolas Dorier and Suredbits co-founder Chris Stewart used the same DLC deals to bet on the 2020 US presidential elec automation.

With Report, DLC contracts leave more minor marks on the chain, making it easier to execute smart bitcoin contracts.

Many people use “revolutionary” and “flexible” to contracts. However, with all that said, we still have a long way to go before using smart contracts on Bitcoin becomes a typical standard process.

So, although Tpinnovativemart Bitcoin operational contracts, shortly. Programs of decentralized (Dapp) and organizations of autonomous decentralized (Daos) based Bitcoin (including  Ethereum blockchain features are blocked) will not.

Instead, we are likely to see the bitcoin contracts in the areas of insurance payments, residential real estate transactions. And financial continuity products in the short term, which offer significant opportunities, for example:

• The Taproot can schedule life insurance payments based on a receipt acceptable of a death certificate or equivalent. This type of payment in 2019 in the United States exceeded $ 760 billion.
• The Taproot can finalize residential real estate transactions after the seller’s bank has approved the mortgage payment receipt. Statistics show that 5.8 million homes were sold in the United States annually up to May 2021 (May 1400). The average price of these houses was $ 350,0taproot can pay annual financial pensions at a specified time and on a scheduled basis. The pension assets in the United States exceeded $ 3 trillion by 2020.

Of course, it is not yet clear how Bitcoin will penetrate these markets. In the meantime, perhaps the factor that determines the success of Bitcoin in penetrating these markets is the amount of customer demand to pay all or part of these revenues in the form of Bitcoin.

Finally, insurance companies that issue life insurance products or sell annuity products represent some of the most conservative institutions in the financial world. These companies went on sale in the mid-1800s, and their motto was lifelong activity.

Suppose these insurance companies succumb to their customers’ demand to enter the field of digital assets. And blockchain, this demand will most likely go to Bitcoin. Bitcoin is more technically more conservative than Ethereum and blockchain in terms of technology.

Bitcoin is also more similar to gold and money than its competitors. So it is easier to understand its value. MassMutual is one of the insurance companies that has invested in Bitcoin and companies active in the field of Bitcoin.

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