Bitcoin network activates Taproot, most significant upgrade since 2017


  • Bitcoin has just witnessed one of the biggest upgrades to its network in four years.
  • The Taproot update will preserve privacy on the BTC blockchain by obscuring complicated transactions.
  • Schnorr signatures, introduced in the upgrade, will also be a game-changer for smart contracts on the protocol. 

One of the most anticipated upgrades to the Bitcoin network has just been activated. Taproot, the first BTC update in four years, will unlock the potential for smart contracts and expand the leading cryptocurrency’s utility.

Taproot received near-universal support

The long-awaited Bitcoin upgrade, Taproot, was activated on November 14 at block 709,632. The new update will allow developers to integrate new features enabling improvements of privacy, scalability and security on the BTC network.

90% of miners signaled their support for the upgrade, leading to the upgrade being locked in Q2 this year. The update effectively activated the first major upgrade to the network’s code since Segregated Witness was introduced in 2017. Unlike the 2017 upgrade, which witnessed a controversial ideological divide, Taproot has received near-universal support.

One of the major features of the update is the introduction of Schnorr signatures, allowing more complex transactions on the Bitcoin network to be made. With the new upgrade, transactions from multi-signature wallets would look like any other transaction, enhancing the privacy and security of transactions.

According to Alyse Killeen, the founder and managing partner of Bitcoin-focused venture firm Stillmark, Taproot opens a breadth of opportunities for entrepreneurs interested in expanding the utility of the bellwether cryptocurrency.

The new upgrade also allows for smart contracts to be cheaper and smaller, as they take up less space on the blockchain. 

Bitcoin price eyes new all-time high following Taproot upgrade

Bitcoin price is aiming for a new all-time high following its retracement that started on November 11. The 100 four-hour Simple Moving Average (SMA) continues to provide support for the flagship cryptocurrency as BTC climbs higher, resuming its rally.

A symmetrical triangle pattern is validated on the 4-hour chart, suggesting a 13% rise towards $71,703 from the upper boundary of the governing technical pattern. While Bitcoin price faced a minor sell-off following its all-time high on November 10, the bullish target remains on the radar.

The immediate resistance for Bitcoin price is at the November 8 high at $66,556. Slicing above this level could see BTC reach for a new record high.

BTCUSDT

BTC/USDT 4-hour chart

However, if selling pressure increases, Bitcoin price could fall towards the 50 four-hour SMA at $64,939 before dropping further towards the 21 four-hour SMA at $64,310. Additional support may emerge at the November 2 high and the October 22 high, at $64,262 and $63,698, respectively.

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

Bitcoin struggles against resistance as bulls keep their eye on $40,000

Bitcoin price action faced intense selling pressure after the Fed’s decision, with Bitcoin losing more than 5% from its Wednesday high. If the sell-off from the top wasn’t discouraging enough for bulls, then the daily close in the red certainly added insult to injury. 

More Bitcoin news

Crypto.com bulls maintain tentative support zone as CRO bulls target $0.50

Crypto.com price continues to face challenges above the $0.40 price level. Strong selling against the Tenkan-Sen at $0.40 tests buyers' conviction – failure to break above the Tenkan-Sen signals continued weakness.

More Crypto.com news

Polkadot price develops support to return to $30

Polkadot price is holding, so far, the $20 value area as its primary support zone. The recent downtrend and sell-off in the cryptocurrency market has positioned DOT in a strong support zone and one that will likely create the bottom it needs to pursue its next uptrend.

More Polkadot news

Ripple buys back $200 million worth of shares, set to go public at the end of the lawsuit

Ripple bought back $200 million worth of Series C shares from its lead investor, a UK-based investor firm. The payments giant strengthened its balance sheet, set to go public at the end of the SEC vs. Ripple lawsuit.

More Ripple news

Bitcoin: BTC may capitulate to $30,000

Bitcoin price has dropped considerably over the last three weeks. The recent downswing has made things worse for BTC and hints that a steep correction could be on its way.

Read full analysis

BTC

ETH

XRP