U.Today – Major cryptocurrency exchange Coinbase (NASDAQ:) has officially announced that its users can now send (BTC) to Taproot addresses, expanding access to more on-chain destinations and improving the overall user experience for those using the major update Bitcoin.
“We are pleased to announce that Coinbase․com users can now send Bitcoin to Taproot addresses, providing access to more onchain destinations,” Coinbase wrote in a recent tweet.
Taproot, an update rolled out in November 2021, aimed to improve privacy, performance, and clever contract capabilities on the Bitcoin network.
The Taproot address, also known as the Bech32m address, is a unique Bitcoin address format starting with “bc1p” and originating from the Bitcoin Taproot update that includes Schnorr signatures. While these addresses improve transaction confidentiality and efficiency, not all wallets support Bech32m.
Many exchanges have not yet rolled out support for Taproot addresses, so users cannot take full advantage of the upgrade. Coinbase’s decision to allow Bitcoin transfers to Taproot addresses brings it in line with the evolving Bitcoin ecosystem.
Bitcoin Taproot Update Three Years Later
The Taproot update rolled out in November 2021 after a 90% consensus among Bitcoin miners.
The Taproot update included three Bitcoin (BIP) improvement proposals: BIP340 (Schnorr Signatures), BIP341 (Taproot), and BIP342 (Tapscript).
Taproot provides Bitcoin with an enhanced transaction programming language that incorporates Schnorr and Taproot technology. This allows developers to more efficiently implement future Bitcoin updates.
Although the Taproot update was rolled out about three years ago, it may take some time to take full effect. The impact of this modernization is expected to be fully realized in the coming years as more service providers adopt this technology.
