Taproot

A 2021 Bitcoin upgrade (BIP-340-342) that enables more efficient and private transactions, especially for multisig and Lightning.

Taproot is a Bitcoin upgrade that activated in November 2021. It introduced Schnorr signatures (more efficient than the older ECDSA) and a new way to spend complex transactions that makes them indistinguishable from regular ones on-chain.

For users, Taproot means slightly cheaper transactions and better privacy. A multisig spend, a Lightning channel close, and a regular single-signer transaction all look the same on-chain when they use Taproot — observers can't tell what type of wallet you have.

Taproot addresses start with `bc1p`. Modern wallets generate Taproot addresses by default. Older wallets that pre-date Taproot still work fine, just with the older address types — Bitcoin is backwards-compatible.

Learn this in our courses

Course topic

Bitcoin foundations

Start here. What Bitcoin is, where it came from, and why it matters.

Related terms

Glossary

BIP

Bitcoin Improvement Proposal — the standard format for proposing changes to Bitcoin.

Glossary

Multisig

A wallet that requires multiple signatures to spend. 2-of-3 means any two of three keys can authorise a transaction.

Glossary

Address

A unique string used to receive Bitcoin. Public, but tied to no name unless you reveal one.

← Back to the full glossary

Learn Bitcoin the practical way

Real lessons, sats earned, your own wallet. Free to start.