With block 1,663,200, the Taproot soft fork went live on the Liquid Network, the world’s leading sidechain. The activation is significant as it marks the Liquid Network’s latest upgrade and brings new use cases, technology, and functionality to the ecosystem.
Bringing New Improvements To Liquid
The latest upgrade was completed on Sunday, and the Liquid Network took to Twitter to announce the news.
“Liquid received its latest upgrade this past Sunday. Taproot and new opcodes were activated on the world’s leading sidechain, enabling all of the benefits of Taproot as well as new use cases made possible by the new opcodes.”
With Taproot now live on Liquid, significant improvements can be implemented to the sidechain.
- Privacy improvement through unused script branch hiding
- The use of scriptless scripts for moving BTC on or off Liquid through Swap Transactions
- More efficiency when it comes to multisignature transactions
- Blech32m encoding for confidential addresses
A Significant Step Towards The Implementation Of Simplicity
The Taproot soft fork is a significant step for Liquid, as it signals the completion of a crucial step towards the implementation of Simplicity on Liquid. Simplicity is a new and more expressive language that will replace the currently used Bitcoin Script. Simplicity could also replace the Bitcoin Script on the Bitcoin mainchain if there is consensus for the change.
A Little Information About Liquid
Liquid Network is a settlement network that gives users faster and confidential Bitcoin transactions. Since it is a sidechain of Bitcoin, users can seamlessly move BTC between the mainchain and sidechain through a verifiable 1:1 peg.
The Liquid Network significantly improves the efficiency of crypto markets and is used by Exchange platforms, OTC Trading desks, retail traders, and asset issuers.
Liquid Use Cases
As a sidechain of Bitcoin, the Liquid Network has several use cases in the Bitcoin ecosystem. It ensures faster transactions, with a block time of one minute. It also significantly improves the confidentiality of transactions, preventing information such as the amount or type of asset transacted from being visible to third parties. Liquid also allows anyone to issue assets on it, such as security tokens, stablecoins, and digital collectibles, with the assets coming with the same features as Liquid Bitcoin.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.