Bitcoin is gearing up to roll out support for Taproot privacy technology and Schnorr signatures. Blockstream developers have introduced a new version of MuSig2 multisignature transactions.
In a blog post, developers Jonas Nick and Tim Ruffing have proposed a new MuSig2 multisignature transaction scheme. It should reduce the technical complexity of multi-signature transactions while maintaining the privacy of the parties to the transaction.
The proposed multisignature scheme takes the best from the previous methods. The older version, called Checkmultisig, requires less interaction between participants, but provides a lower level of security and anonymity. Modern MuSig1 offers a better level of anonymity, but requires more interactions to confirm a transaction.
MuSig2 will provide the same level of anonymity and security as MuSig1, but will reduce the number of participant interactions to two. MuSig2 can also improve the privacy of the second level Lightning Network solution and the so-called threshold signatures, which are often used by exchanges and custodian services.
“MuSig2 provides the same level of functionality and security as MuSig1, but provides the ability to eliminate most interactions between participants. You only need two rounds of communication to create a signature, and one of the rounds can be prepared in advance, “the developers write.
In mid-October, it was reported that support for Taproot technology and Schnorr signatures had been incorporated into the Bitcoin Core code. However, the timing and methods of activating updates have not yet been determined.
