Bitcoin Taproot Update Not a Priority for Coinbase Exchange

Bitcoin Taproot Update Not a Priority for Coinbase Exchange

Key facts:
  • Apparently Bitcoin updates are of no interest to Coinbase.

  • Most bitcoin (BTC) exchanges have not adopted Taproot.

The American exchange Coinbase seems not to have Taproot, the most recent update of Bitcoin, in its priorities.

According to reports by Murchandamus, an engineer at Chaincodlabs, Coinbase does not have in its priorities to enable withdrawals and deposits to bech32m addresses, the new Bitcoin address format introduced in November 2021 with Taproot, an update focused on the privacy and efficiency of transactions carried out. in this protocol.

Among other contributions to the Bitcoin ecosystem, Murchandamus keeps a list of the exchanges and services that have adopted Taproot and other implementations, where it can be seen that Coinbase does not accept Taproot in Bech32m and P2TR address formats.

Coinbase also does not accept SegWit (P2WPKH/P2WSH), despite the fact that SegWit has already been activated in Bitcoin for 4 years and its adoption levels in the industry are at all-time highs, CriptoNoticias reported.

Bitcoin Taproot Update Not a Priority for Coinbase Exchange
Coinbase and other exchanges are yet to adopt Taproot for bitcoin (BTC) withdrawals and deposits. Source: bitcoin.it

Notably, on the website you can see that Binance does not accept Taproot, despite an announcement published in November they had said yes.

Binance’s ranking on the Murchandamus listing likely changed after a user lost his funds while making a withdrawal from Binance to a Taproot address, sparking a lot of controversy that ended when the exchange publicly acknowledged his mistake and refunded his funds. .

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Bitcoin Taproot Update Not a Priority for Coinbase Exchange

Taproot Node Adoption Has Slight Growth

During the month of December 2021, the account of Bitcoin nodes that accept Taproot had an increase of approximately 10%, an improvement over the previous months, including its activation (November).

Bitcoin Taproot Update Not a Priority for Coinbase Exchange
More than 60% of Bitcoin nodes accept Taproot. Fountain: Twitter.

At this time, the 62% of Bitcoin network nodes accept Taproot, allowing users to send bitcoins from their wallets in this format. This equates to more than 19,000 nodes already running Bitcoin Core 22.0 software, which Taproot brought as an update to the protocol.

On the other hand, the number of nodes that do not accept Taproot and run older versions of Bitcoin Core would be in decline according to data from developer Luke Dash Jr.

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Bitcoin Taproot Update Not a Priority for Coinbase Exchange
Bitcoin Taproot Update Not a Priority for Coinbase Exchange
In blue, nodes prior to version 22 of Bitcoin Core. In orange, the nodes that accept Taproot (Bitcoin Core 22.0). Fountain: Twitter.

It should be noted that the adoption of Taproot has been quite fast in terms of the number of nodes, but not in terms of the number of transactions who spend bitcoins according to this format.

However, the number of entries (User Transaction Input, UTXI or input) and outputs (User Transaction Output, UTXO or output) have increased at a steady pace since November, which means that more users already have coins ready to spend with this format.

Bitcoin Taproot Update Not a Priority for Coinbase Exchange
The amount of outputs (UTXO) of bitcoins that can be spent according to Taproot is around 1500 outputs. Source: transactionfee.info.

The opposite has happened with SegWit, which despite the fact that several exchanges and services were slow to adopt it, by August 2021 the 80% of Bitcoin transactions were made with this implementation, CriptoNoticias reported. This figure has remained the same since then until now, according to the portal Transactionfee.info.

In any case, specialists have good expectations regarding Taproot, since it would allow better management of wallet signatures, it will bring privacy benefits, as well as it could enable interesting tools to, for example, leave bitcoin inheritances to your children.

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