What is Taproot? The Bitcoin upgrade for smarter transactions
By SendPay Business · · 2 min read
Taproot is an upgrade to Bitcoin that was activated in November 2021. It built on SegWit and made more complex transactions, such as those needing several signatures, more efficient and more private.
What it changed
- It added Schnorr signatures, which can combine several signatures into one.
- Complex spending conditions can be hidden unless they are actually used.
- Many multi-signature transactions now look like ordinary single-signature ones on the blockchain.
Why it matters
Because less data needs to be published, complex transactions can cost less in fees. Because they look like simple payments, it is harder for outsiders to tell how a wallet is set up. It also gives developers more room to build new features.
Spotting Taproot addresses
Taproot addresses start with bc1p, while native SegWit addresses start with bc1q. Most modern wallets can send to both.
Where SendPay fits
SendPay platforms let customers buy, sell and hold crypto, held with regulated partners, alongside GBP, EUR and USD accounts, powered by licensed partners. SendPay doesn't offer trading tools, DeFi or lending.
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This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. PayPal, Patreon and Substack are named as reference points only and are not affiliated with SendPay Business.