Coinbase announced a new feature allowing users to send Bitcoin to Taproot addresses from October 8th. This update expands Taproot's accessibility for users, enhancing privacy, scalability, and security.

Taproot Implementation in Coinbase

Coinbase has joined major crypto exchanges like Binance, OKX, and Kraken in providing support for Bitcoin transactions to Taproot addresses. In a tweet, the company stated that users can now send Bitcoin to Taproot addresses, opening access to more on-chain destinations.

Features of the Taproot Update

Initially proposed by Bitcoin developer Greg Maxwell in 2018, Taproot was activated in November 2021 with 90% miner approval. The update includes three Bitcoin Improvement Proposals aimed at boosting privacy, efficiency, and smart contract capabilities on the Bitcoin network. Since activation, Taproot usage has significantly increased.

Consequences and Impact of Taproot

Taproot has allowed for more efficient transactions and support for advanced smart contracts, leading to innovations such as BRC-20 and Runes and the Ordinals protocol for unique NFT-style data. The growth in Taproot usage also increased Bitcoin transaction costs, which surpassed Ethereum's in November 2023.

Coinbase's support of Taproot strengthens the upgrade's role as a key element in the evolution of the Bitcoin network, enhancing its functionality and appeal for innovative solutions.