Taproot

Definition

Taproot is a Bitcoin upgrade that introduces a spending design combining a public-key path with optional script-based alternatives. When the key-path conditions are satisfied, an output can be spent using a Schnorr signature without revealing unused alternative scripts. When a script path is used, the spender reveals the relevant script and the proof needed to connect it to the output's commitment, rather than necessarily revealing every possible spending condition. This can improve efficiency and reduce unnecessary disclosure for suitable arrangements. Taproot does not make all Bitcoin transactions anonymous or automatically compress every complex policy into one ordinary signature; wallet and protocol design still matter. Taproot outputs use witness version one and Bech32m addresses. The upgrade should be distinguished from individual applications that use its capabilities, because a particular token protocol, wallet feature, or inscription convention can add assumptions beyond Taproot's consensus rules.