01Definition
Taproot defines a SegWit version 1 output that can be spent through a key path or by revealing only the executed branch of a committed script tree. It activated at block 709,632.
02Key path and script path
The cooperative or ordinary case can look like a single-key Schnorr spend. If conditions require a script, the spender reveals the relevant branch and a Merkle proof rather than every possible condition.
03What privacy it does not provide
Taproot can make some complex spends less distinguishable and disclose less script data, but it does not make transactions anonymous. Amounts, timing and transaction graph information remain public.
⌖Reference points
01
Activated 14 November 2021
02
Uses Schnorr signatures
03
Reveals only executed script branches
04
Improves efficiency and selective privacy