Cash App to Add Bitcoin Taproot Support

Cash App is moving forward to integrate support for the Taproot Bitcoin upgrade by Dec. 1, an enhancement that enables Taproot to offer developers an expanded toolbox to work with as they continue to build on Bitcoin, Bitcoinmagazine and others reported on Thursday (Nov. 18).

The upgrade will offer increased privacy features, lower transaction fees and improved smart contracts, and went live on the Bitcoin network on Nov. 14 at block 709,632.

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“To ensure a seamless update, we will confirm that the mainnet Taproot activation is working as expected before rolling it out to all customers,” according to a statement by Cash App. “By Dec. 1, 2021, all Cash App customers should be able to send bitcoin to Taproot-enabled wallets.”

Square-owned Cash App is supporting Taproot addresses to enable its users to make the most of new features that went live on the Bitcoin network, according to reports. The move ensures that Taproot capabilities will be brought to light as the network starts using the address more often.

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Recently activated as a soft fork on the Bitcoin network, the aim of the Taproot update was to boost transaction privacy and efficiency while enabling better smart contracts. Pay-to-Taproot (P2TR) was born, and it allowed bitcoin spending to look the same no matter what type of transaction was happening. Taproot addresses also lower transaction fees.

With the reduction of the transaction size, making almost all transactions look alike, and having a single signature, Taproot has the ability to roll out bigger, complex operations deployed on Bitcoin that previously would have been near impossible.

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The Taproot upgrade could bring about some drawbacks, but only if Taproot isn’t fully adopted by participants. Most cons are offset by the benefits.