El development of Bitcoin it does not stop, and in the midst of that dynamic, an improvement that is expected within this protocol is that of Graftroot. This improvement is based on the work that is being carried out on two already known improvements Taproot and Schnorr firms, and its objective is to make the creation of transactions and scripts more flexible to create much more elaborate blocking conditions. In this way, Bitcoin scripts using Graftroot could allow the programming of various blocking conditions that are currently not possible, all while maintaining security and improving the privacy of the system.
But how can Graftroot make all this possible? Well, this and much more we will analyze below.
Origin of Graftroot
First of all, the origin of Graftroot goes back to two very important concepts: Taproot and the Schnorr firms. These are the building blocks of the Graftroot, and without these it is impossible for it to function. To make it very clear, Taproot is an improvement that seeks to change the way in which Bitcoin scripts they can be built, run, and stored on the Bitcoin blockchain. Its main mission is to make Bitcoins Scripts more flexible so that they can improve their programming or smart contracts.
The improvement proposed by Taproot is accompanied by a new type of digital signature called Schnorr signatures. This is a type of digital signature whose purpose is to create smaller, more secure and private digital signatures than their counterparts. ECDSA, the standard used by Bitcoin today.
With that said, we can see that Taproot and Schnorr firms will greatly improve Bitcoin's capacity, and it is something we can applaud. However, this does not end there. He 5 of February 2018, the Bitcoin developer, Gregory Maxwell, sent an email to the list of Bitcoin developers publicizing their Graftroot proposal. The proposal was an improvement for Taproot that will expand its possibilities. The idea quickly caught on, especially since Taproot's designer was also Gregory Maxwell, and no one knew better than him how this improvement worked and how it could be improved.
In fact, Maxwell presented both ideas only 13 days apart, making it very clear that there was room for improvement on both ideas.
The above said in a less technical and extensive way is: Grafroot allows us to introduce more programming in the scripts, improving the programming conditions and activation of the scripts, and all this without altering the protocol and enjoying the privacy advantages that Taproot and Schnorr allow us.
Certainly an elegant solution, which at the same time offers improvements that we will all appreciate and that will have a great positive impact on the usability of Bitcoin.
How does Graftroot work?
Now exactly how Graftroot works. Well, first of all, as we already discussed, Graftroot works thanks to Taproot and the Schnorr firms. These two functions are basic and necessary for proper operation. But don't worry, you can know everything you need to know if you visit our articles to Taproot y Schnorr firms, here at Bit2Me Academy.
With that said, we will proceed to give a brief example of how Graftroot works. To do this, imagine the following scenario:
Explaining the scenario
First of all, Daniela and Luis can create a 2-of-2 multisignature and put their money there, this is something that we can do in Bitcoin right now. What is new is to include several alternative conditions that will be executed if the necessary conditions are present for said operation to be fulfilled. And if one of them is met, the rest of the conditions cannot be seen by anyone else.
This means that, if, for example, Daniela withdraws the money a year later because Luis has had a problem, she will be able to do it without problems. But at the same time in the blockchain, we will only be able to see the script that has allowed such action, the rest of the scripts and conditions will remain hidden. In other words, only that condition that is met in the transaction can be seen in the blockchain publicly, the rest of the alternatives and conditions will remain private and no one will be able to know what they were.
This feature certainly improves privacy, but not only that, it improves the ability to program each Bitcoin within the network. And the best thing is that these transactions, when seen on the blockchain, will not have much difference from a normal cryptocurrency transaction.
As for the "insurance function" imagine how many Bitcoins are not frozen in the blockchain because they simply forgot or lost the key to manage it? With an address and a script using Graftroot it would be possible to program special conditions so that the money within that address can move under other conditions that are programmed, thus avoiding their losses. Thus, cases such as QuadrigaCX with its 1000 BTC lost, or that of a Bitcointalk user with 8900 BTC lost, would be another story.