- Cash App will add support for Taproot, the latest Bitcoin upgrade, by December 1.
- Over time, users can benefit from the upgraded privacy features, lower transaction fees, and better smart contracts.
- Taproot went live on the Bitcoin network on November 14 at block 709,632.
Cash App will add support for the Taproot Bitcoin upgrade by December 1, the company said in a statement. The highly anticipated upgrade went live on the Bitcoin network on November 14 at block 709,632, and the Square-owned financial services app will roll out support for taproot addresses early next month.
“To ensure a seamless update, we will confirm that enabling Taproot on the mainnet works as expected before rolling it out to all customers,” the statement said. “By December 1, 2021, all Cash App customers should be able to send bitcoin to Taproot-enabled wallets.”
Taproot was activated as a soft fork on the Bitcoin network on Sunday to improve the privacy and efficiency of transactions as well as to enable better and more robust smart contracts. The upgrade brought about a new type of address, Pay-to-Taproot (P2TR), allowing bitcoin spending to look the same whether the sender is making a simple payment, complex multi-signature transaction, or using the network. Lightning.
In addition, Taproot addresses will allow users to save on transaction costs compared to previous address types; the more complex the spending conditions, the more the user will save. By reducing the size of the transaction and making almost any transaction look like a simple single sign-on transaction, Taproot will also enable larger and more complex operations to be deployed on Bitcoin that were previously impractical or nearly impossible.
By adding support for Taproot addresses, Cash App, a mobile financial platform and broker owned by Square, will allow its users to use the latest features live on the Bitcoin network. The move is important because some of the possibilities offered by Taproot will only be refreshed once a considerable part of the network begins to frequently use the new type of address.