The final activation of the Taproot update to the Bitcoin protocol is expected in the coming days and Binance will support it.
Taproot is one of the rare updates to the Bitcoin protocol, more than four years after the previous one.
Taproot, Binance support coming soon
Taproot is a milestone in the evolution of Bitcoin, as it introduces new features that greatly expand its potential use.
Although it is a soft-fork, i.e. backwards compatible with the previous version of the protocol, it is necessary to update the various software to take advantage of its features.
There are now many wallets and nodes that have already updated their software to be compatible with the new update, and today came yet another important confirmation.
In fact, the world’s largest crypto exchange, Binance, has publicly declared that it will support Taproot.
— Binance (@binance) November 9, 2021
The soft-fork will take place at block 709.632 on the Bitcoin blockchain, or approximately 14 November, and will not involve the creation of any new tokens.
The exchange states:
“Binance will handle all technical requirements involved for all users holding BTC in their Binance accounts”.
BTC trading will not be interrupted or affected.
The consequences of Taproot on Bitcoin
The main consequences of the activation of this update will be seen over time, thanks to the new features that will be developed on Bitcoin wallets or third-party platforms that allow their use.
For this reason, there will probably be no immediate consequence on the use of Bitcoin, while the price of BTC may be affected.
Often in these cases, the price rises before the fork and then falls once it happens. The increases of the last few days may also be due, in part, to expectations for this fork.
Currently, just under 50% of the world’s existing Bitcoin nodes still support Taproot, but this percentage is likely to increase greatly in the coming days.
Bitcoin Node Taproot Support: 49.74%
Unknown: 669 pic.twitter.com/5GKWyln9ZO
— Taproot Signal (@taproot_signal) November 9, 2021