- Five months have passed, but primary adoption by bitcoin users remains remarkably low.
- A positive outlook seems to be the prevailing sentiment among developers as they expect adoption to pick up steam soon enough.
- continuous long-term work is being done by the bitcoin development community on a wide variety of new technical features.
taroot is the biggest upgrade bitcoin (btc) has seen since segwit (segregated witness), providing the cryptocurrency with a variety of new features that make it more private and more versatile. these include support for complex transactions involving multiple signatures, as well as the ability to make lightning channels look like normal bitcoin transactions.
Reading: Taproot bitcoin segregated
Turned on in November 2021, taproot adoption hasn’t exactly taken off, despite its benefits. data available from transactionfee.info shows that around 0.37% of all bitcoin transactions use taproot at the moment, compared to 85% for segwit, which was activated in August 2017.
However, bitcoin developers speaking to cryptonews.com say they are confident taproot usage will gradually increase over time, just as it did with segwit. and while there are no more major updates to bitcoin on the immediate horizon, a host of minor improvements are being worked on regularly, which together are expected to make bitcoin more secure, efficient, and robust, as taproot makes it private and articulated.
learning from the history of segwit
Five months have passed, but primary adoption by bitcoin users is still remarkably low. So low, in fact, that several commentators have felt compelled to comment on it recently, including Arcane Assets Chief Investment Officer Eric Wall.
Of the 0.0048% of transactions using taproot on November 14, the day of its launch, the total percentage has slipped very modestly.
Further info on the Bitcoin Wiki shows that implementation of P2TR (pay-to-Taproot) outputs by wallets, exchanges, and Bitcoin clients also remain low.
For example, of the 54 exchanges listed on the wiki, at the time of writing, only two have enabled p2tr transactions so far. Of the 34 software wallets, only five have adopted taproot, while four plan to adopt the update soon.
See also: Bitcoin&39s impact on data centers
The situation is somewhat better for hardware wallets, as three out of 15 have enabled p2tr transactions, and another three plan to do so. still, given that there really hasn’t been a mad rush to the main root, one might wonder if most people really care about bitcoin becoming a more complex and articulated blockchain protocol, and are happy that remain simply an investment vehicle. and/or deposit of value.
This, however, would be a rash judgment, as bitcoin developers say they are very confident that taproot adoption and usage will improve over time.
“I think it will be a while yet before we see the entire industry adopt taproot, but I am optimistic that adoption will continue,” said Bryan Bishop, co-founder of Custodian Banking and a principal contributor to Bitcoin. .
This positive outlook seems to be the prevailing sentiment among coders, and one bitcoin developer, who asked to remain anonymous, also hopes adoption picks up steam soon enough. he also points out that taproot adoption is not simply a matter of flipping a switch, but requires prior adoption of other standards that make taproot possible.
“remember, segwit happened in 2017 and adoption took years after that. it takes time for wallet developers and others to add support for taproot and related technology, such as using descriptor wallets and bech32 addresses,” he told cryptonews.com.
This is an important point, and on the bright side, the absolute number of taproot transactions has increased steadily since the activation in November. from 30 departures on November 14, the number increased to 1,940 per day (at time of writing), with entries increasing from 13 to 1,426.
Obviously, it’s relatively easy to post big percentage gains when starting from scratch; however, these figures have increased by 6,366% and 10,869%, respectively. this is good, especially when primary root integration is a more complicated process than it seems at first glance.
Still, it’s worth noting that, four months after its own activation, SegWit transactions had risen from 0% to 16%. We may therefore have to consider the possibility that the wider Bitcoin community and ecosystem may not go for Taproot with as much enthusiasm as it went for SegWit.
It is arguable that some of what taproot offers, such as smart contracts and enhanced privacy, is in competition with other overlay solutions.
for example, the internet computer (icp) is in the process of integrating with bitcoin, achieving compatibility that would allow it to communicate with the bitcoin network and use its smart contracts to transact btc. Similarly, stacks is a layer one platform that aims to make bitcoin programmable and also plans to launch non-fungible tokens (nfts) on the original cryptocurrency’s blockchain.
Since a number of projects already aim to bring improved functionality to bitcoin, it is possible that the broader demand for taproot will end up being less than that for segwit. Of course, only time will tell.
continuous development of bitcoin
Regardless of how much traction the taproot gains in the short term, bitcoin continues to evolve and experience development, despite the impression, fueled largely by criticism of its consensus mechanism, that it is hardly moving.
“a lot of bitcoin core development (which is what I can talk about) isn’t so much about adding features as it is about behind-the-scenes work of finding and fixing bugs and making the software, protocol, and [peer- to-peer, (p2p)] more robust, decentralized, secure and resource-efficient network. these, along with fungibility and privacy, are ongoing concerns,” said the anonymous developer.
The developer also notes that the bitcoin development community is doing ongoing, long-term work on a wide variety of new technical features. these include miniscript, bip324 encrypted p2p, erlay, packet retransmission, assumption of validity/assumption, as well as work to separate the various components of the larger code base, particularly the critical consensus code.
In addition to this, “bitcoin core v23 will be available soon and contains changes to improve the robustness of the bitcoin peer to peer network, adds support for nodes to use the cjdns network in addition to tor and i2p along with ipv4/6, it advances the selection of wallets and descriptor coins, and has a number of user/client-oriented rpc [remote procedure call] and cli [command line interface] enhancements,” he added.
In other words, taproot not only believes that bitcoin’s development is outpacing and outpacing its users, but bitcoin is also in the process of implementing additional changes that will continue to keep it ahead of its own adoption curve. Bitcoin’s update that has barely been used to its full potential (yet) shows that, rather than resting on its laurels, it appears to be one of the most deceptively dynamic cryptocurrencies in the industry.____
more info:– game theory of bitcoin adoption by nation-states- top narratives on ethereum and its merger with its proof-of-stake beacon chain- elon musk should listen to cathie wood on bitcoin – how taproot could affect bitcoin’s competitiveness
– how to use bitcoin segwit transactions: a guide- technically capable bitcoin has other mass adoption challenges to solve