The network is now in a new era with the Taproot Upgrade going live on November 14. Taproot upgrades promise to increase scalability, privacy, lower transaction fees, and network scalability.

What can we expect for Bitcoin’s future with the Taproot upgrade?

Additional Use Cases

Taproot’s upgrade uses a Schnorr digital signature scheme. Developers expect that the Schnorr Signature will unlock smart contracts potential on the Bitcoin Network.

Katherine Dowling is the chief compliance officer of Bitwise Asset Management.

We expect that this upgrade will unleash a new wave in innovation in bitcoin, primarily focused on smart contracts.

DApps and DeFi.

On smart contracts, decentralized apps (dApps), DeFi and NFTs can be built. Smart contracts offer the network almost unlimited possibilities. We’ve seen some of these use cases. This is what it’s highly likely to happen on Bitcoin.

Flipside

• Taproot does support smart contracts but it could take some time before DeFi or NFTs are available on the Bitcoin network.

Price Boost

While there have been no early price reactions to Taproot’s launch, the price of Bitcoin is now back to being close to its all-time highs of around $69,000.

Analysts predict that Bitcoin could reach $80k in December, with smart contracts being made possible via the Bitcoin network. A bigger boost is sure to come when DeFi and NFTs are made available on the Bitcoin network.

Why you should care

Taproot is being hailed as having laid the groundwork for the next stage of innovation within the Bitcoin network. It could prove to be the most significant boost Bitcoin has seen in its history if everything goes according to plan.

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