After years of missing out, Coinbase users can finally access a major upgrade: the ability to send Bitcoin to Taproot addresses.
On Tuesday, Coinbase addressed this gap, allowing its millions of users to take advantage of Taproot’s privacy and cost-saving features, “creating access to more onchain destinations.”
The update addresses long-standing frustrations for Coinbase users who, since Taproot’s launch in November 2021, were unable to take full advantage of the upgrade.
Prior to this update, many Coinbase users had reported difficulties in sending Bitcoin to Taproot addresses, leading to delays and failed transactions.
With the new integration, Coinbase users can send Bitcoin to Taproot addresses, joining platforms like OKX, Binance, and Kraken.
Introduced as the largest Bitcoin upgrade since SegWit in 2017, Taproot promised enhanced privacy, but Coinbase users were left behind for years.
Proposed by Bitcoin Core developer Gregory Maxwell, Taproot uses Schnorr signatures, which compress complex transactions into smaller, more efficient data packages.
This reduces the amount of information stored on the blockchain, improving scalability and lowering transaction fees.
With the Taproot upgrade, complex transactions, like those requiring multiple signatures, can be made to look like standard Bitcoin transfers. This limits the amount of data exposed on the public blockchain, making it more difficult to trace transactions.
Edited by Sebastian Sinclair