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Latest Bitcoin Upgrade Will Be A Game Changer For Smart Contracts

Image Credits: Getty Images

Bitcoin’s popularity across the world is at its peak. Last month has been full of thrills for the crypto market and the crypto-enthusiasts, and now the approval of the Bitcoin upgrade by the miners on Saturday again left the industry in turmoil.

The latest upgrade in the cryptocurrency called the Taproot is the first upgrade in the currency in the last four years and it is a rare moment this time because the decision is taken with the support and general agreement of all the stakeholders which is a big deal for Bitcoin.

According to the experts, the makeover of the currency will improve bitcoin in many ways, It will not only result in greater transaction efficiency but will also enhance the privacy in the bitcoin transactions. Moreover, the upgrade will unleash the potential for smart contracts, which is a key feature of the cryptocurrency’s blockchain technology. Smart Contract is a feature that eradicates the role of the middleman in bitcoin transactions, hence improving security.

The last bitcoin upgrade was announced in 2017, amid all the controversies due to ideological differences among the stakeholders, The name of the last upgrade was “last civil war”. On the other hand, the latest upgrade got whole-hearted support from all the stakeholders and the crypto geeks as this change is directed towards the improvement of the currency which is fairly incremental.

This makeover will bring about a change in the digital signatures which is likely to be a fingerprint that can be left by the user on every transaction he/she makes. The latest digital signature technology used by the currency is referred to as the “Elliptical Curve Digital Signature Algorithm”, this digital signature ensures the security of the bitcoin wallet of the user by controlling it and making sure that the transactions are only made by the authorized owner. The taproot will shift the technology from Elliptical Curve Algorithm to Schnorr Signatures. This upgrade makes the multi-signature transactions unreadable.

Schnorr Signatures will also be a Game Changer for the Smart Contracts which is a key feature of its blockchain that removes the middleman in the transactions and makes the self-executing agreements live, In this way, the currency can be used for the daily transactions smoothly. The smart contracts will work like a magic for the currency as Ethereum is the latest example for it. Smart Contracts is driving the innovation on the Ethereum Network already.