Comprehensive Analysis of New Bitcoin Technologies: Innovations and Future from Taproot to BRC-20

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The Development of New Bitcoin Technologies and Future Prospects

Bitcoin, as the pioneering work of blockchain technology, has always attracted attention for its technological development. This article will outline the important technological advancements of Bitcoin in recent years and discuss the usage methods of these new technologies and the future development needs.

1. The Development History of Bitcoin Core Technology

1.1 The Evolution of Scripting Languages

Bitcoin initially adopted a non-Turing complete scripting language, which limited the development of complex smart contracts. With the advancement of technology, Bitcoin has gradually introduced the following important upgrades:

  • OP_RETURN opcode: allows storing a small amount of arbitrary data in transactions
  • Segwit: By separating signature data from transactions, it effectively increases block capacity.
  • Taproot: Introduced new technologies such as Schnorr signatures and MAST, further expanding the scripting capabilities of Bitcoin.

1.2 The Controversy of Expansion and Forks

Bitcoin has gone through multiple forks during its development, mainly surrounding issues of scalability such as block size.

  • August 2017: Bitcoin Cash ( BCH ) fork, increasing the block size to 8MB.
  • November 2017: SegWit2x hard fork proposal was canceled
  • November 2018: Bitcoin SV( forked from BCH, further expanding the block size to 128MB.

These forks reflect the community's divergence on scaling solutions, but they also drive the exploration of technology.

![On the eve of another outbreak, a comprehensive summary of Bitcoin's new technology development])https://img-cdn.gateio.im/webp-social/moments-9b1f3d4275e95a439e15b80fcc7583a9.webp(

2. Important New Technologies and Their Applications

) 2.1 Taproot

Taproot is one of the most important upgrades for Bitcoin in recent years, officially activated in November 2021. It includes the following core technologies:

  • Schnorr signatures: Replacing ECDSA, achieving signature aggregation, improving transaction efficiency and privacy.
  • MAST###Merklized Abstract Syntax Tree(: Optimize the storage and verification of complex scripts
  • Tapscript: Extending the capabilities of Bitcoin scripting language

Taproot provides a better infrastructure for the development of Bitcoin smart contracts.

![On the eve of another outbreak, a comprehensive summary of Bitcoin's new technology developments])https://img-cdn.gateio.im/webp-social/moments-a1a0a7c80d29f909fe52d2245296e64c.webp(

) 2.2 Ordinals and Inscriptions

The Ordinals protocol assigns a unique serial number to each Satoshi and allows data to be attached to it, such as the inscription ###. This innovation enables the Bitcoin network to support new applications like NFTs.

On the eve of another outbreak, a comprehensive summary of Bitcoin's new technology development

( 2.3 BRC-20

BRC-20 is a fungible token standard built on Ordinals, enabling the issuance and transfer of tokens on the Bitcoin network.

![On the eve of another outbreak, a comprehensive summary of Bitcoin's new technology development])https://img-cdn.gateio.im/webp-social/moments-8e4224e5242adda2c65a4b8f4d909699.webp###

( 2.4 Other Emerging Protocols

  • Atomicals: Introduced new standards such as ARC-20, aiming to improve certain limitations of Ordinals.
  • Runes: A UTXO-based token proposal by Casey Rodarmor aimed at addressing some issues of BRC-20.
  • Stamps/SRC-20: Another implementation of Bitcoin NFT, storing metadata in multi-signature UTXO.

![On the eve of another outbreak, a comprehensive summary of Bitcoin's new technology development])https://img-cdn.gateio.im/webp-social/moments-6eaa1335a958daf244f652625ac1ba8a.webp###

3. The Use of New Technologies and Future Development

( 3.1 Current Application Trends

Currently, new applications on the Bitcoin network are mainly focused on utilizing the additional space after block expansion, such as NFT and token issuance. In-depth applications of script capability expansion are still relatively limited.

![On the eve of another outbreak, a comprehensive summary of Bitcoin's new technology development])https://img-cdn.gateio.im/webp-social/moments-983664079f5d1f82a788cf7e798b82e1.webp###

( 3.2 Future Development Direction

  1. Asset Issuance and Management: Improve the financial application ecosystem on the Bitcoin network.

  2. Layer 2 Solutions: Develop second-layer networks such as the Lightning Network to improve transaction throughput.

  3. Cross-chain Interoperability: Exploring interoperability solutions between Bitcoin and other blockchains

  4. Smart Contracts: Utilize new features like Taproot to develop more complex smart contract applications.

  5. Privacy Protection: Further enhance the privacy and anonymity of transactions.

  6. Scalability: Continuously explore expansion solutions to support larger-scale applications.

![On the eve of another outbreak, a comprehensive summary of Bitcoin's new technology developments])https://img-cdn.gateio.im/webp-social/moments-4a1d474f41b0ecfa22c0ff3f682049b8.webp###

With the continuous advancement of technology, the Bitcoin network is expected to support more diverse Web3 applications, while maintaining its core function as a store of value and expanding to a wider range of use cases.

On the eve of another outbreak, a comprehensive summary of Bitcoin's new technology developments

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CryptoFortuneTellervip
· 4h ago
Coding every day has driven me crazy.
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rekt_but_resilientvip
· 16h ago
Is everything still good, or is btc still appealing?
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CryptoNomicsvip
· 16h ago
*adjusts glasses* empirically speaking, your layer 2 thesis lacks proper stochastic modeling
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SchroedingersFrontrunvip
· 16h ago
Cryptocurrency Trading for ten years, the long wick candle points down is me.
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NFTBlackHolevip
· 17h ago
It's only fun to earn while playing.
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GateUser-40edb63bvip
· 17h ago
BTC is back to doing these high-tech things.
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