With the Taproot Upgrade finally going live on November 14th, the Bitcoin network has been ushered into a new age. The Taproot upgrade promises to bring scalability, improved privacy, cheaper transaction fees, and scalability to the network.
With the Taproot upgrade now up and running, what should we expect from Bitcoin in the near future?
More Use Cases
The Taproot upgrade operates on a digital signature scheme called Schnorr. The Schnorr signature brings multi-signature support to the Bitcoin network, which developers expect to unlock the potential for smart contracts on the Bitcoin network.
According to Katherine Dowling, chief compliance officer at Bitwise Asset Management
"We expect this upgrade to unleash a new wave of innovation in bitcoin-focused mainly on smart contracts."
DApps, DeFi, and NFTs
Decentralized applications (dApps), DeFi, and NFTs are built on smart contracts. We have seen a glimpse of the almost limitless possibilities and use cases that smart contracts have provided the Ethereum network with. It is highly anticipated that the same will soon be replicated on the Bitcoin network.
On The Flipside
- While Taproot supports smart contracts, it may take a while before DeFi and NFTs feature on the Bitcoin network.
While there have been no early price reactions to Taproot’s launch, the price of Bitcoin is now back to being close to its all-time highs of around $69,000.
With smart contracts now possible on the Bitcoin network, analysts have predicted that BTC could hit $80k by December. When DeFi and NFTs go live on the network, a bigger boost surely awaits.
Why You Should Care?
Taproot has been hailed to set the foundations for the next phase of innovation in the Bitcoin network. If all goes as planned, it could be one of the biggest boosts Bitcoin has ever seen.