Bitcoin Optech Newsletter no. 152 reported that version 0.21 of the Bitcoin Core wallet now has support for receiving Taproot transactions.
This update, mentioned in the newsletter, is a first step towards completing the Taproot integration and being able to send transactions to and from the Pay-to-Taproot (P2TR) address format in the future.
The proposal was combined into the Bitcoin Core code on June 4, including nine modifications that support Taproot’s bypass paths for descriptors and the path for future updates.
The bypass routes are the paths followed by the software to access the coins from the seed. This is especially true in cases where funds are restored to a new wallet. The wallets they can use different bypass paths depending on the standard they are using. Supporting Taproot leads, funds could already be imported under the Taproot standard into the Bitcoin Core wallet.
As for the descriptors, we must first understand what the script. The script o transaction code defines the spending conditions of that specific transaction. These spending conditions can be many. They can be the address format (Pay-to-public-key; Pay-to-Script-hash; Pay-to-wrapped-script-hash; Pay-to-taproot). Two out of three signatures may be required to spend. They may only be able to be spent at the height of a certain block. Anyway, anything that can be programmed into a transaction.
All these spending conditions are included in the code of each transaction, and whoever signs the transaction needs to meet those conditions for the transaction to be valid.
A descriptor, on the other hand, describes you (the script) at software ese wallet script o condition of expenditure. That is, it describes the software how you can spend that transaction.
So that your wallet can receive transactions with script or Pay-to-Taproot (P2TR) own spending conditions, you need to be able to understand them. With this update, keys are supported and script P2TR, while now Bitcoin Core has the descriptors to understand those script. From now on, need to add the descriptors to be able to transfer to other P2TR addresses.
At the moment, Taproot’s signature support for descriptor wallets is in an open proposal made by Pieter Wuille, co-founder and chief technical engineer of Chaincode Labs, which is still being worked on.
Taproot is already locked in Bitcoin
Taproot is a Bitcoin update that adds a new layer of privacy to the network. It allows to program multiple spending conditions for the same transaction, opening the possibility of smart contracts, and obfuscate those conditions by combining multiple signatures into one. This allows Bitcoin transactions to be cheaper, easier and more efficient.
Both multi-signature and single-signature transactions will look the same on the blockchain when there is enough Taproot adoption and transaction space will be reduced. This helps network traffic and reduces tariff costs.
As reported in CriptoNoticias, mining groups have already signaled their deal with Taproot and it is already a fact that it will be available to any user in November of this year. Works like the one being done on the Bitcoin Core wallet are indispensable for users to take advantage of the advantages that this update brings.