Popular with Bitcoin wallets, but not on exchanges

Taproot, the latest major Bitcoin update, has a higher adoption among wallets than exchanges in the ecosystem.

This update introduced privacy-oriented features that, among other things, indicate that legally regulated Bitcoin (BTC) exchanges They may not have much incentive to adopt it.

For their part, an increasing number of wallets are allowing Taproot transactions, either to receive or send bitcoins between users. Among the 32 wallets listed on Bitcoin.it, 17 Tabrot ports Either to send or receive bitcoins.

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Unenthusiastic exchanges about Taproot

On the exchange side, Taproot adoption picture is not very encouraging. In the best cases, only withdrawals are allowed, but no deposits are allowed.

According to the bech32m address approval list (used by Taproot), Of the 52 listed exchanges, 14 allow withdrawals to Taproot addresses, but only one of the 52 listed cryptocurrency exchanges, Agoradisk, You are allowed to make deposits.

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Some of the well-known exchanges that have partially adopted Taproot (send or withdraw bitcoin only) are Swan, CashApp, OkCoin, Bitaroo, StackinSats, VBTC, Bitpanda y FTX, Among other things.

Exchanges may not be very motivated to accept bitcoin deposits made from Taproot addresses, as this bitcoin functionality has been known to improve user privacy and hinder blockchain analysis.

Some of the software wallets that enable the sending and receiving of Taproot transactions are Sparrow the Specterthe two desktop wallets that have gained some popularity in recent months.

CriptoNoticias recently mentioned Specter and Sparrow among the programs that put privacy first and give users complete control over their finances.

Another wallet that also supports sending and receiving Taproot type transactions is elseAvailable for mobile devices (Android and iOS), also with Ability to send bitcoins over the network Lightning.

Nodes Using 72% Taproot Account - Taproot is more popular with wallets than exchanges.
72% of bitcoin nodes accept Taproot, and another 27% don’t yet implement it. Source: Taproot Signal.

As for other wallets such as BlueWallet, Green by Blockstream, Electrum, Samourai, Wallet Of Satoshi (WoS), Wasabi and JoinMarkt, they allow you to receive bitcoins to Taproot addresses, but they do not allow you to send bitcoins.

The full list of wallets, exchanges, and other services that have adopted Taproot can be read here.

Bitcoin Core already generates Taproot addresses automatically

The next update to the Bitcoin Core client, version 23, already allows Taproot-compatible addresses to be created automatically, according to developer known as Murch.

Bitcoin Core 0.23 Provides Virtual Taproot Addresses Taproot is more popular on wallets than exchanges - CryptoNews.
Bitcoin Core’s graphical interface already offers the option to generate Taproot addresses. Source: Andrew Chow.

In previous versions you had to use a function known as output descriptor a wallet descriptorwhich in simple words is a label that describes the wallet’s ability to generate the various address formats found in Bitcoin.

across the output descriptor (Descriptors) Bech32m addresses were generated, which introduced Taproot to Bitcoin. This method, the descriptors method, was implemented by Muun Wallet to enable Taproot in its application a few days after this proposal was put into effect in the protocol, in November 2021.

Now, all wallets implementing Bitcoin Core version 23 will have the ability to generate Taproot addresses without using descriptors, which could lead to adoption of this update in the ecosystem.

Perhaps wallets that do not yet fully support Taproot, or only partially support it (receive bitcoin only or only send bitcoin), can more easily adopt this update.

Regarding Bitcoin Core version 23, The developers invited the public to test and review this versionso that potential errors can be corrected or the programming simply improved.

By following a guide or tutorial posted a few days ago, various applications using the Bitcoin Core client can test its operation and notify the developers of any possibilities or improvements that need to be made.

 

 

 

 

 

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