A Bitcoin upgrade that enables more private and efficient spending using Schnorr signatures and script path commitments.
Taproot (activated on BTC in Nov 2021) improves privacy and efficiency by introducing key- and script-path spending with Schnorr signatures and Merkleized script trees. Complex spending policies can appear on-chain like simple single-sig spends when using the key path.
"A multisig policy can be represented by a single public key; if the happy path is used, the spend looks like a normal transaction, reducing fees and improving privacy."
Benefits include smaller signatures, key aggregation, and fewer visible script details on-chain. Some features require wallet support and new address types (e.g., P2TR) to be fully utilized.
"Two parties can cooperatively sign using Schnorr aggregation so the chain only sees one signature, even though multiple keys authorized the spend."
All terms and definitions may update as the Cryptionary improves.