Let’s explore how multisignature schemes built on Taproot can improve privacy and lower transaction fees.

More than three years ago, in November 2021, the Taproot update was soft forked into Bitcoin, bringing with it new features for transactions and more efficient Schnorr signatures. While adoption has been rather slow at first, the new Taproot format accounts for about 20% of all Bitcoin outputs today and more applications are starting to make use of Taproot’s more advanced features. Of course, the BitBoxApp and BitBox02 support sending and receiving with Taproot addresses since 2022 as well.

In this article, we want to take a glimpse into the future, at new multisignature schemes such as MuSig2 and FROST, which enable multisignature wallets that benefit from Taproot’s improved privacy and efficiency. To understand how they work and where their benefits actually come from, we’ll take a brief look at Bitcoin scripting and Taproot first, before diving into the signature schemes in more detail!

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