Preparing For Taproot Bitcoin – Bitcoin Magazine: Bitcoin News, Articles, Charts, and Guides

The Bitcoin Optech newsletter provides readers with a top-level summary of the most important technical news happening in Bitcoin, along with resources that help them learn more. To help our readers stay up-to-date with Bitcoin, we’re republishing the latest issue of this newsletter below. Remember to subscribe to receive this content straight to your inbox.


This week’s newsletter includes our regular sections describing how you can prepare for taproot, summarizing the latest releases and release candidates, and listing notable changes to popular Bitcoin infrastructure projects.

News

No significant news this week.


Preparing for taproot #7: multisignatures

A weekly series about how developers and service providers can prepare for the upcoming activation of taproot at block height 709,632.

In the 1,000 blocks received prior to this writing, 11% of all transaction inputs contained a multisig opcode. Two of the largest and most immediate benefits of taproot will manifest if many of the users and services creating those transactions switch from multisig opcodes to scriptless multisignatures.

The first major benefit will be a reduction in transaction size. Script-based multisigs increase in size as more keys and signatures are required, but multisignatures are a constant small size. The smallest effective multisig policy (1-of-2) requires more space than a multisignature policy that can involve thousands of signers. The decrease in size leads to direct reduction in fees for the multisignature users and an indirect reduction in fees for all users as the same amount of demand for confirmed transactions can be fulfilled using a smaller amount of block space.

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