Taproot Consensus: The Innovative Path of Bitcoin Layer 2 Network

Taproot Consensus, as a layer 2 network solution built on native Bitcoin technology, is leading a new wave in the decentralized space. This innovative solution consists of three core components: Schnorr signatures, MAST contracts, and SPV node networks.

Schnorr signatures and MAST contracts are key technologies introduced in the 2021 Taproot upgrade. The SPV node network, short for Simplified Payment Verification node network, originates from the concept proposed by Satoshi Nakamoto in the Bitcoin whitepaper, aiming to enable light nodes to efficiently verify transactions.

The operation mechanism of Taproot Consensus is quite innovative. First, Schnorr signatures break through the limitations of traditional multi-signatures, expanding the number of multi-sign addresses from 15 to 1000. This not only improves the level of decentralization in asset management but also enhances security and privacy protection while ensuring efficiency.

However, the decentralization of multi-signature addresses alone is not sufficient to meet the demands of efficient operation. To this end, MAST contracts have emerged. This smart contract technology based on Merkle trees automates and intelligentizes the signature process, eliminating the cumbersome manual signatures and greatly enhancing system efficiency and security.

The SPV node network issues commands based on this foundation through a network composed of Bitcoin light nodes. This design relies on BFT network consensus to drive MAST contracts, avoiding control by a single organization or individual, and truly achieving complete decentralization. The choice of an SPV node network over a regular POS node network is because Bitcoin light nodes can synchronize a layer of data and efficiently and securely verify payments without the need for complete transaction records.

Overall, Taproot Consensus achieves a high level of decentralization for multi-signature addresses through Schnorr signatures, while MAST contracts code the management of multi-signatures, eliminating the need for manual signatures. The SPV node network ensures the decentralized operation of the entire system, driven by the consensus of the Bitcoin light node network to facilitate the multi-signature process.

This innovative combination makes Taproot Consensus the current second-layer network solution that is closest to the native characteristics of Bitcoin and has the highest degree of decentralization. It not only enhances the scalability and efficiency of the Bitcoin network but also opens up new possibilities for future blockchain applications.