BIP 341 (Taproot)

Bitcoin Improvement Proposal (BIP) 341 defines Pay-to-Taproot (P2TR), a new way of sending bitcoin. P2TR combines the functionality of Pay-to-Public-Key (P2PK) and Pay-to-Script-Hash (P2SH) scripts, giving users great flexibility and privacy benefits. While BIP 341 defines P2TR, Taproot’s new output type, BIP 342 defines Tapscript, an update to Bitcoin’s scripting language which will allow Bitcoin nodes to validate Pay-to-Taproot inputs. Taproot will utilize Schnorr signature scheme, as defined in BIP 340. Together, BIP 340, 341, and 342 comprise the Taproot upgrade, which is currently in the process of being activated for Bitcoin. Learn more about Bitcoin’s Taproot upgrade.