Cryptocurrency exchange Coinbase has finally enabled its users to send Bitcoin to Taproot addresses. This update became available on Tuesday, allowing millions of users to take advantage of Taproot's benefits, such as enhanced privacy and reduced transaction costs.
Previously, Coinbase users faced issues when trying to send Bitcoin to Taproot addresses, resulting in delays and transaction failures. Since Taproot's launch in November 2021, Coinbase had lagged behind other major platforms like OKX, Binance, and Kraken, which already support this feature.
Taproot became the most significant upgrade to the Bitcoin network since the introduction of SegWit in 2017. By utilizing Schnorr signatures, Taproot allows complex transactions to be compressed into more compact data packets, reducing blockchain load and lowering fees. The update also simplifies complex transactions, such as multi-signatures, making them indistinguishable from regular Bitcoin transfers, thus improving privacy.
