HomeCryptoCurrencyBicoin Optech: early use of Taproot in bitcoin wallets puts funds at...

Bicoin Optech: early use of Taproot in bitcoin wallets puts funds at risk

The Bitcoin Operations Technology Group (Optech) explained in the weekly bulletin # 158 why the wallets should wait for the activation of Taproot to be completed, before generating addresses for said update.

In previous newsletters, Bitcoin Optech has motivated the developers of wallets and services to implement the improvements related to Taproot as soon as possible, so that they are ready when it is activated. However, the new bulletin leaves a very clear warning of not generating any P2TR format addresses before block 709.632 , the block after the one that marks the activation. “This could result in your services or your users losing money,” notes Bitcoin Optech.

The reason for not generating advance addresses is that any payment to a P2TR format output can be spent by anyone prior to the 709.632 block. The funds would be completely unsecured. But from that block on, thousands of full nodes will start to enforce the rules of BIP341 and BIP342 (and, by association, BIP340).

Bitcoin Optech.

Taproot is a Bitcoin update, planned for November of this year, which will increase the privacy of transactions, as it would make transactions indistinguishable from single signature and multi-signatures in a blockchain analysis, as reported by CriptoNoticias. P2TR ( Pay.to-Taproot ) is the format of the addresses generated by the wallets compatible with this network update .

The bulletin even extends the precautions regarding the generation of Taproot addresses beyond block 709.632, as it considers that there is a risk of reorganizations of the chain of blocks «deliberately created to take money from payments Early P2TRs. ”

Specifically, Optech developers recommend waiting at least one day after activation, or 144 blocks after activation. activation. This period, according to Optech, “represents a reasonable margin that minimizes risk without preventing you or your users from taking advantage of the benefits of taproot.”

On June 12, Taproot was blocked to activate in Bitcoin as of November of this year, at the height of block 709.631, as It was reported by CriptoNoticias.

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Sandra Loyd
Sandra Loyd
Sandra is the Reporter working for World Weekly News. She loves to learn about the latest news from all around the world and share it with our readers.

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