Hold onto your crypto hats because Coinbase has just leveled up! They've hopped on the Taproot train alongside big players like Binance, OKX, and Kraken. That's right, as of October 8th, Coinbase users can now send Bitcoin to Taproot addresses, opening up a whole new world of possibilities.
This isn't just any update; it's a game-changer. Taproot is all about beefing up Bitcoin's privacy, scalability, and security. So, Coinbase users, get ready to ride the wave of next-gen Bitcoin transactions!
In a tweet that got the crypto world buzzing, Coinbase proudly declared that their users can now send Bitcoin to Taproot addresses, broadening the horizon for on-chain adventures.
For those not in the know, Taproot was first dreamt up by Bitcoin developer Greg Maxwell in 2018 and later brought to life by Pieter Wuille. It made its debut in November 2021 with a whopping 90% approval from Bitcoin miners. This upgrade isn't just a pretty face; it's a soft fork, meaning it's backwards compatible with older Bitcoin software. It incorporates three key proposals: BIP340 (Schnorr Signatures), BIP341 (Taproot), and BIP342 (Tapscript), all designed to take Bitcoin's privacy, efficiency, and smart contract chops to the next level.
While Taproot took its sweet time to catch on, it eventually skyrocketed in popularity. In January, CryptoQuant's CEO Ki Young Ju noted a remarkable jump from a mere 1% to 39% usage within just a year.
But wait, there's more! Taproot isn't just making transactions smoother; it's also paving the way for some mind-blowing innovations like BRC-20 and Runes, Bitcoin's very own tokens. Plus, it's a key player in the rise of Ordinals, a protocol that lets users inscribe unique data on Bitcoin, much like NFTs on other blockchains.
In November 2023, Bitcoin transactions even outdid Ethereum's in terms of cost, thanks to Bitcoin Ordinals. According to BitInfoChart, the average Bitcoin transaction fee hit $10.34, overtaking Ethereum's $8.43 on November 20th.
And if you're wondering about the future, Taproot is already inspiring startups like Taproot Wizards and Tap Protocol, all geared up to revolutionize the Bitcoin Ordinals ecosystem. So, buckle up, because the Taproot journey is just getting started!
