• Bitcoin’s Taproot Upgrade Will Assist RSK in Realizing Its Intrinsic Value & Potential

  • The Taproot technical upgrade for the Bitcoin network, scheduled for release in November, promises increased transaction privacy, efficiency, and the introduction of smart contracts on the network, allowing RSK to advance its value proposition in the DeFi arena.

    A Bitcoin-based smart contract platform will benefit from new developments.

    Bitcoin, the world’s largest cryptocurrency, is finally getting its biggest technical upgrade in four years, thanks to widespread support from miners and stakeholders. Taproot, one of the most anticipated Bitcoin network upgrades since the SegWit upgrade, is set to be released in November.

    The Taproot update, as well as the related Schnorr Signature update, will finally strengthen the Bitcoin network’s privacy, security, and scalability features. More importantly, the Taproot upgrade will enable the blockchain to support smart contracts, a game-changing feature that will enable the network to support thriving DeFi ecosystems.

    Currently, the majority of DeFi projects are built on Ethereum, primarily because Bitcoin was not designed to meet the needs of developers creating dApps for the DeFi ecosystem. However, with the introduction of RSK, the Bitcoin network-secured smart contract blockchain, projects can take advantage of the trustless and transparent decentralized finance opportunities offered by Bitcoin to a greater extent.

    The RSK ecosystem has grown in recent years, revealing that there is significant demand for DeFi on the Bitcoin Network, eventually transforming Bitcoin from a speculative asset to a viable currency. Since its inception, the platform has been instrumental in adding value and functionality to the Bitcoin Contracts ecosystem by enabling smart contracts, instant payments, and increased scalability. The platform has achieved 72 percent hash power as of April 2021, making it one of the most notable layer two (L2) platforms on the Bitcoin network.

    Developers can easily migrate and integrate existing dApps because the RSK network combines the best features of Ethereum and Bitcoin. Running smart contracts on the Bitcoin blockchain is currently both costly and time-consuming. The RSK Network has overcome this challenge to some extent, but with the Taproot upgrade, the leading Bitcoin-secured smart contract platform has a good chance of further optimizing costs and transaction throughput.

    One of the primary advantages of the Taproot upgrade is that it will result in significantly lower transaction fees. While other features such as privacy and security benefit the entire Bitcoin community, affordable transactions directly benefit RSK users because the platform allows users to perform peg-in and peg-out transactions.

    Developers can now use the RSK network to implement smart contracts that enable instant transactions, which are typically faster and less expensive. The Taproot upgrade will include Merkel Branching (MAST) technology and Schnorr Signatures, both of which are intended to improve transaction efficiency and privacy.

    Because of the Bitcoin network’s core upgrade, RSK can increase the number of pegnatories while maintaining the exact peg-out transaction costs. However, in order to benefit from the Taproot upgrade, RSK will most likely need to upgrade its network as well as its PoWHSMs.

    What's your reaction?
    Happy0
    Lol0
    Wow0
    Wtf0
    Sad0
    Angry0
    Rip0