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The upcoming Taproot Bitcoin upgrade was proposed to enhance the network scripting capabilities and also the privacy aspect.
Major Bitcoin mining pools have signaled for the Taproot system upgrade scheduled to take place during the second half of the year. Should the upgrade take place, it would be the largest system upgrade within the Bitcoin network for the past few years.
According to news outlet Cointelegraph, among the top Bitcoin mining pools that have lately signaled for the Taproot upgrade include BTC.TOP. Other top Bitcoin mining pools that have signaled for the Taproot upgrade Binance Pool where it occurred at block height 683,878, AntPool, Slush pool, Poolin.com, and F2Pool.
BTC.TOP signaled for Taproot upgrade on block height 683,945. However, there is a long way to go before the upgrade is either approved or postponed to the next difficulty around August 11.
According to market data provided by Taproot. watch, there are approximately 1460 Taproot blocks left until the softfork is locked in. Notably, 17.61% of the total miners have signaled for Taproot activation, reciprocating to 355 blocks at the time of reporting.
On the other hand, 10% of them are non-signaling blocks that account for 195 blocks at the time of reporting.
Taproot Softfork and Its Bitcoin System Effects
The upcoming Taproot Bitcoin upgrade was proposed to enhance the network scripting capabilities and also the privacy aspect. Notably, the upgrade has been a source of contention between different factions who view the short and long-term effects of the upgrade.
On a short-term basis, some have argued that the upgrade will not improve on the privacy aspect. According to the laid out reasons, should the adoption of the softfork occur and the adoption remain low, then the clustered addresses would reduce making the work for chain analysts easier than it is currently.
Notably, governments are seeking to have some control over digital currencies by the introduction of the Central Bank Digital Currency (CBDC). However, the Bitcoin network is a decentralized system that seeks to ensure the long-term system provides more privacy, by making the work of chain analysts extremely difficult depending on the level of adoption.
On a long-term basis, should the Taproot soft fork be implemented, then Bitcoin users can rest assured their privacy is utmost. Notably, the upgrade developers intend the Bitcoin transactions to incorporate MAST capabilities that help reduce transaction size and thus time.
By helping make smart contracts more efficient and private, the MAST option will only reveal the relevant parts of the contract when authorizing spending in a transaction, UTXO).
The upgrade is expected to have a significant effect on Bitcoin price and the entire cryptocurrency market, whereby it will be super bullish depending on the outcome and the level of adoption.