Despite activating the update Taproot of Bitcoin in November 2021, data available on transactionfee.info indicates that only 0.37% of transactions are executed through this soft fork, compared to 85% for the Segregated Witness update, which was activated in August 2017.
The Taproot update was activated in November 2021 by Bitcoin Core. Its developers promised a whole host of changes, including greater privacy, support for multi-signature transactions. And finally, the ability to make Lightning Nodes appear as Bitcoin transactions.
So far only 0.37% transactions go through Taproot. But that doesn’t seem to worry the developers, who point out that the Segregated Witness update had a similar adoption rate, which steadily increased after its launch. Currently, its adoption rate reached 85%.
SegWit, which was proposed by Pieter Wiulle in 2015, modifies the data storage structure during Bitcoin transactions. SegWit updates solve Bitcoin’s scaling issue, allowing more transactions to be included in a single block. Therefore, Bitcoin becomes more suitable for large trading volumes.
However, the main goal of SegWit was to fix “transaction malleability,” a bug that could cause transactions to be reopened, allowing bad actors to alter the ID and hash of those transactions. Within four months of the activation of this update, Segwit transactions saw a 16% increase.
Bitcoin’s Taproot Update
In January 2018, Gregory Maxwell offered the Taproot update to meet the needs of many users who complained about the lack of Bitcoin transaction privacy options. They also wanted the network to scale faster and keep their information secure.
However, traders still want to improve Bitcoin’s privacy capabilities.
“I think it will take some time before the whole industry adopts Taproot. But, I’m optimistic about continued adoption,” said Bryan Bishop, a Bitcoin Core contributor.
“Remember, Segwit was born in 2017, and adoption took several years. Wallet developers and others need time to integrate Taproot and related technologies like using descriptor wallets and bech32 addresses,” another developer explained.
Users complain about slow transactions
Several specialists have commented on this delay in the adoption of Taproot, including Eric Wall, chief investment officer of Arcane Assets, who tweeted:
“@0xB10C do you think you can add more decimal places here? 0% is not exciting to read. I know we must have gone over 0.1% or something! You can see the graph going up.”
Indeed, the percentage of transactions made via Taproot has increased very gradually after reaching 0.0048% on November 14, 2021. Moreover, Bitcoin Wiki revealed that the use of pay-to-Taproot (P2TR) exits by Bitcoin clients, wallets and exchanges remains low. However, one in three Bitcoin hardware wallets performed P2TR transactions.
That said, the question is whether the majority of users want to keep Bitcoin as an investment instrument or a store of value, rather than keeping their eyes on improvements in the underlying blockchain technology. Or maybe smart contracts and enhanced security are shared features with competing blockchains.
For example, the Internet Computer network is currently in the process of integrating with Bitcoin, something that will allow it to communicate with the Bitcoin network using ICP smart contracts to transact in BTC. Stacks is another platform that plans to launch non-fungible tokens on the Bitcoin network.
Bitcoin Core is in continuous development
According to the developers, Bitcoin Core development continues to push the bitcoin network forward, while fixing bugs and improving the software, protocol, and peer-to-peer network.
In addition, the longer-term works will allow the addition of new technical features such as Miniscriptencrypted P2P BIP324, Erlaypacket relays and assumevalid/assumeutxo. In addition, the team will also focus on separating the different code elements that make up the large code base.
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Bitcoin Core: Despite Low Taproot Adoption, Developers Remain Optimistic – BeinCrypto
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