Completely Different Than the 2021 Bitcoin Bull Run: How Taproot Adoption Reshapes Network Dynamics

The Bitcoin network is rapidly evolving, and its on-chain fundamentals have changed completely compared to the last bull run in 2021. The two most important upgrades on the network – Taproot and SegWit – are seeing increased user adoption despite challenges in the market.

  • According to an update by CryptoQuant CEO Ki Young Ju, Taproot adoption soared from 1% to 39% in just a year.
  • Meanwhile, SegWit is now prevalent among addresses, revolutionizing on-chain fundamentals since the 2021 bull run. This transformative growth essentially highlighted Bitcoin’s maturation and its readiness for the challenges ahead.
  • Segregated Witness (SegWit) is a crucial upgrade that involves a modification in Bitcoin’s transaction structure. Its primary aim as a protocol enhancement was to safeguard against transaction tampering and reduce transaction durations by enlarging block capacity.
  • Transaction tampering concerns the potential alteration of transaction details, jeopardizing new blocks.
  • SegWit additionally facilitated Bitcoin’s progression towards supporting smart contracts and transitioning to a subsequent iteration, Taproot. Implemented in 2021, this upgrade enhanced transaction handling, rendering it faster and more economical.
  • The Taproot upgrade facilitated the development of decent-sized applications (dApps) on the Bitcoin blockchain by enhancing network privacy, scalability, and security.
  • With the introduction of novel signature schemes and a versatile transaction framework, the Bitcoin blockchain’s sustainability was bolstered, enabling support for DeFi (decentralized finance) initiatives in the long run.
  • In May, 75% of Bitcoin on-chain transactions embraced Taproot, and its adoption surged further in 2023 due to growing interest in Ordinals.
SPECIAL OFFER (Sponsored)
Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).

You Might Also Like:


.custom-author-info{ border-top:none; margin:0px; margin-bottom:25px; background: #f1f1f1; } .custom-author-info .author-title{ margin-top:0px; color:#3b3b3b; background:#fed319; padding:5px 15px; font-size: 20px; } .author-info .author-avatar { margin: 0px 25px 0px 15px; } .custom-author-info .author-avatar img{ border-radius: 50%; border: 2px solid #d0c9c9; padding: 3px; }

The post appeared first on CryptoPotato

Buy Bitcoin with Credit Card

BitMex Leverage Trading

Automated Trading Bot

Related Posts

Leave a Reply

Bitcoin (BTC) $ 97,230.05 3.67%
Ethereum (ETH) $ 3,321.26 7.44%
Tether (USDT) $ 1.00 0.17%
Solana (SOL) $ 249.86 6.63%
BNB (BNB) $ 621.84 2.07%
XRP (XRP) $ 1.11 1.41%
Dogecoin (DOGE) $ 0.383997 1.07%
USDC (USDC) $ 1.00 0.13%
Lido Staked Ether (STETH) $ 3,322.94 7.39%
Cardano (ADA) $ 0.787639 4.64%