Isabella García
After years of lagging behind, Coinbase has finally introduced a significant update that allows its users to send Bitcoin to Taproot addresses. Announced on Tuesday, this upgrade gives millions of Coinbase users access to Taproot’s privacy and cost-saving features, broadening the range of on-chain destinations available for transactions.
The update addresses the long-standing frustration experienced by many Coinbase users who, since Taproot’s launch in November 2021, were unable to fully utilize the benefits of the upgrade. Prior to this integration, users often faced issues when attempting to send Bitcoin to Taproot addresses, resulting in transaction delays or failures.
📢 Exciting news!
We’re pleased to announce that Coinbase․com users can now send Bitcoin to Taproot addresses, creating access to more onchain destinations.
— Coinbase Assets 🛡️ (@CoinbaseAssets) October 8, 2024
With this new functionality, Coinbase joins other major platforms like OKX, Binance, and Kraken, all of which have already integrated Taproot support.
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Taproot, introduced in 2021 and recognized as the most significant Bitcoin upgrade since SegWit in 2017, was designed to enhance transaction privacy and scalability. Initially proposed by Bitcoin Core developer Gregory Maxwell, Taproot uses Schnorr signatures, which compress complex transactions into smaller and more efficient data packages. This compression reduces the amount of data stored on the blockchain, leading to better scalability and lower transaction fees.
One of Taproot’s key advantages is its ability to make complex transactions—such as those requiring multiple signatures—appear like standard Bitcoin transfers. This enhances privacy by limiting the amount of data exposed on the blockchain, making it harder to trace individual transactions.
