Taproot Support

We’re glad to share that the Dfns wallets-as-a-service platform now supports Bitcoin's Taproot upgrade. This important step improves privacy, efficiency, and flexibility for our clients. Taproot, one of Bitcoin’s biggest upgrades since SegWit, introduces Schnorr signatures, Merkelized Abstract Syntax Trees (MAST), and Tapscript, each adding new features for Bitcoin as a programmable, privacy-focused asset.

Why Taproot matters for Bitcoin

In a nutshell, Taproot brings Bitcoin greater privacy, cost-efficiency, and development potential, benefiting both users and developers alike. It introduces Schnorr signatures, which replaces the older ECDSA scheme, presenting a series of improvements:  

1. Multi-signature transactions enhance privacy by concealing transaction details. As we discussed in our FROST blog post, multi-signature transactions are more compact and appear similar to single-signature ones, making them harder to distinguish on-chain.
2. MAST (Merkelized Abstract Syntax Tree) improves privacy by allowing complex transaction conditions without exposing extra data on-chain. This is particularly beneficial for Dfns users in DeFi or trustless agreements, keeping sensitive information private while enabling complex transaction setups.
3. Tapscript is a recent update to Bitcoin’s scripting language offering more flexibility for developers and allowing the creation of advanced applications on Bitcoin.
4. Last but not least, Taproot also reduces data requirements, lowering transaction fees without compromising security, which is a valuable advantage for users with frequent or high-value transactions.

Secure and programmable Bitcoin

Taproot makes Dfns wallet services even stronger by simplifying multi-signature processes, reducing data exposed onchain, and enhancing the core security framework against past issues like malleability that complicated Bitcoin’s usability.

Our recently open-sourced threshold Schnorr implementation, *givre*, natively supports Bitcoin’s BIP341 Schnorr signatures and BIP32 HD derivation. By combining Taproot cryptography with FROST, Dfns delivers a secure and flexible solution for managing high-value or team-shared wallets.

Taproot in Dfns wallets is more than a minor update; it's a key building block for Bitcoin's future, aimed at supporting institutional and developer adoption. With Taproot, Bitcoin gains greater flexibility, giving users more control, privacy, and enhanced security, all at reduced costs. We're excited to help companies, financial institutions, and developers fully harness Bitcoin's potential on the Dfns wallet platform.