Last November 14, BitcoinBitcoin is the first decentralized digital currency. It was created in 2009, by an anonymous founder or group of founders... More (BTCAn abbreviation for Bitcoin.) had what was probably its most important update since 2017: Taproot. This is a long-prepared software version to include features like Schnorr signatures and Tapscript. Now, bitcoiners can enjoy a network with more speed, more privacy, and lower fees.
To the naked eye, not much has changed inside Bitcoin. Everyone can make their transactions as usual, and even the price hasn’t varied a lot. However, the security and functionality have improved substantially. From now on, developers can write smart contracts inside the Bitcoin blockchainBlockchain is a type of database storing an immutable set of data, verifiable to anyone with access to it —through.... And this means DeFi platforms, Non-Fungible Tokens (NFTs), Decentralized apps (Dapps), and more to come.
Bitcoin won’t be the “new Ethereum” this way, but it’s more flexible now. Besides, Taproot also offers a higher level of privacy for smart contract-related transactions. Or, at least, it will offer it; as it was described by the mining company Braiins:
“If Taproot could hypothetically achieve 100% adoption for future transactions [in Bitcoin], it would make the job of chain analysts much more difficult. Without Taproot, ~100% adoption of any addressAn address is a blockchain equivalent to a bank account number in the traditional financial system, or an email address.... More type would be impossible because there was previously no way to make smart contracts indistinguishable from simpler transactions.”
Additionally, thanks to Schnorr, transactions will be more efficient, and, therefore, cheaper. For now, Bitcoin is swinging between $62k and $65k per coin [CoinMarketCap]. Its last All-Time-High (ATH) was on November 10, with over $68,700 per coin.
Beyond Taproot, regulations come for Bitcoin
A lot of countries worldwide are developing their own regulations for Bitcoin and cryptocurrencies. In the United States, several laws are still pending, including the polemic infrastructure bill to increase crypto taxation. President Joe Biden signed this bill on Monday, but it has to be approved by Treasury yet.
For its part, the new Regulation on Markets in Crypto Assets (MiCA) will come to the European Union between 2022 and 2023. This new framework will especially affect the use of stablecoins, token issuers, and cryptocurrencyA digital currency running on a blockchain and built with cryptography. Contrary to central-bank issued currency, cryptocurrency issuance rules are... companies. All of them will need to comply with some basic rules.
In India, it’s now trending on Twitter #IndiaWantsCrypto, since a possible crypto ban was being discussed by authorities. Luckily, the results of the last meeting between crypto companies and the Indian Parliament weren’t so bad. According to local media, the authorities agreed that crypto can’t be stopped, but they need regulations. Apparently, they’ll start with regulations for cryptocurrency-related ads in the country.
Other nations writing new rules right now in favor of cryptocurrencies include Australia, Canada, United Arab Emirates, Uruguay, Panama, and Ukraine. Likely, more will come as well in the future.
Featured Image by Tamim Tarin / Pixabay
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