While crypto prices are skyrocketing (yet again), the very important technology behind crypto asset #1 gets unnoticed. We screened the news for experts’ take on a technical upgrade of Bitcoin.
Starting August 23, 2017, Bitcoin allowed the process of splitting transactions into blocks by separating signatures. This format is called SegWit (or Segregated Witness) – a soft fork designed to avoid accidental transactions and make the network run faster.
Since the digital signature accounts for 65 percent of a transaction, removing it from the data increased the maximum size of the Bitcoin block from 1MB to almost 4MB. It allowed transactions to reduce the size and fit more of them into a single Bitcoin block. The BTC network gained additional scalability and made transactions faster.
Taproot is the most significant BTC update since the SegWit soft fork of 2017. It is intended to increase Bitcoin's fungibility, improve the functionality of smart contracts, and boost privacy by making all transactions look the same to outsiders.