With Taproot, the Bitcoin network has been upgraded to allow for more secure and private transactions while also enhancing scalability. Taproot, which consists of a number of modifications that alter how transactions are processed, also helps open up new features on the Bitcoin network.
Taproot aims to dramatically increase Bitcoin’s long-term viability and provides access to additional features, maybe including DeFi applications. The BIPs of the upgrade is meant to work in tandem: by lowering the quantity of data stored on the blockchain, Taproot has the ability to both speed up transactions and lower the risk of privacy violations. Additionally, such upgrades ought to make room for more transactions per block, which will in turn lower transaction costs and boost throughput.
The Taproot patch also helps Bitcoin scale up by better utilizing the Lightning Network’s potential. On top of the Bitcoin blockchain, there is a second layer called the Lightning Network. It was introduced in 2017 with the intention of reducing blockchain congestion by enabling off-chain token transactions through direct routes between users.