Coinbase Finally Activates Support for Bitcoin Taproot Transfers: Details from U.Today

Coinbase has officially announced that users can now send Bitcoin (BTC) to Taproot addresses, thereby enhancing access to more on-chain destinations and improving the overall experience for those utilizing this significant Bitcoin upgrade.

In a recent tweet, Coinbase stated, “We’re pleased to announce that users can now send Bitcoin to Taproot addresses, creating access to more on-chain destinations.”

The Taproot upgrade, which was implemented in November 2021, was designed to enhance the privacy, efficiency, and smart contract capabilities of the Bitcoin network. Taproot addresses, known as Bech32m addresses, begin with “bc1p” and stem from this upgrade, which features Schnorr signatures. Although these addresses offer improved transaction secrecy and efficiency, it’s important to note that not all wallets support Bech32m format.

Furthermore, many exchanges have yet to adopt support for Taproot addresses, preventing users from fully experiencing the benefits of this upgrade. Coinbase’s decision to allow Bitcoin transfers to Taproot addresses aligns with the evolving Bitcoin landscape.

### Bitcoin Taproot Upgrade Three Years On
The Taproot upgrade became effective in November 2021 after achieving over 90% consensus among Bitcoin miners. This upgrade included three Bitcoin Improvement Proposals (BIPs): BIP340 (Schnorr Signatures), BIP341 (Taproot), and BIP342 (Tapscript).

Taproot enhances Bitcoin by providing an upgraded transaction programming language that incorporates Schnorr and Taproot technologies, enabling developers to roll out future updates more efficiently.

Though the Taproot update was implemented roughly three years ago, its full potential may take some time to materialize. The upgrade’s impact is expected to be more fully realized in the coming years as additional service providers begin to adopt the technology.