- Taproot enables advanced smart contracts and supports Bitcoin-native tokens like BRC-20.
- Coinbase’s Taproot integration supports the advanced “bc1p” Bitcoin address format.
Coinbase has officially integrated support for sending Bitcoin to Taproot addresses, enhancing user transaction capabilities. This integration comes as Taproot, a significant Bitcoin upgrade from 2021, gains more traction for its efficiency and privacy benefits. The upgrade not only improves Bitcoin’s transaction performance but also facilitates the deployment of advanced smart contracts.
📢 Exciting news!
We’re pleased to announce that Coinbase․com users can now send Bitcoin to Taproot addresses, creating access to more onchain destinations.
— Coinbase Assets 🛡️ (@CoinbaseAssets) October 8, 2024
With Coinbase’s latest update, users can now send Bitcoin directly to Taproot (Pay-to-Taproot) addresses, a move that broadens the scope of on-chain transactions. The Taproot protocol enhances privacy by making complex transactions, like those involving multi-signature agreements, indistinguishable from simple ones on the blockchain. This is a crucial step for Coinbase as it ensures a smoother user experience while aligning with the latest innovations in Bitcoin technology.
Taproot Powers Bitcoin Smart Contracts
The Taproot upgrade also introduces advanced capabilities such as the support for Bitcoin-native tokens like BRC-20. Additionally, it powers protocols like Ordinals, which enable the inscription of unique data onto the Bitcoin blockchain, similar to NFTs. This not only opens new avenues for using Bitcoin but also strengthens the privacy of transactions by masking transaction complexity.
Taproot, activated in November 2021, is designed to enhance Bitcoin’s privacy by introducing a new address format that begins with “bc1p.” This format allows complex transactions to appear like ordinary ones, compared to the previous “bc1q” address format. The result is an added layer of privacy and security for users conducting advanced transactions.
The significance of Taproot’s integration on Coinbase is far-reaching. By adopting this upgrade, Coinbase provides users with a more secure and private way to handle their Bitcoin transactions. Taproot’s privacy feature ensures that details of complex transactions remain hidden, contributing to better overall blockchain confidentiality.
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