After missing it for years, Coinbase users finally have access to a major upgrade: the ability to send Bitcoin to Taproot addresses.
On Tuesday, Coinbase addressed this gap, allowing millions of users to take advantage of Taproot’s privacy and cost-saving features and “access more on-chain destinations.”
This update addresses long-standing complaints from Coinbase users who have not been able to take full advantage of upgrades since Taproot’s launch in November 2021.
Prior to this update, many Coinbase users were reporting issues when sending Bitcoin to Taproot addresses, leading to delayed or failed transactions.
The new integration will allow Coinbase users to join platforms like OKX, Binance, and Kraken to send Bitcoin to Taproot addresses.
Introduced as the biggest Bitcoin upgrade since SegWit in 2017, Taproot promised increased privacy, but Coinbase users were left behind for years.
Proposed by Bitcoin Core developer Gregory Maxwell, Taproot uses Schnorr signatures to compress complex transactions into smaller, more efficient data packages.
This reduces the amount of information stored on the blockchain, improving scalability and reducing transaction fees.
Taproot upgrades allow complex transactions, such as transactions that require multiple signatures, to appear like standard Bitcoin transfers. This limits the amount of data exposed on public blockchains and makes transactions more difficult to trace.
Edited by Sebastian Sinclair
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