According to what is exposed by Bitcoin Wiki, the Trezor hardware wallet and the Wasabi and Sparrow digital wallets are the only ones that are currently planning to add support for the scalability and privacy solution, Taproot. On the other hand, few nodes have updated to support Taproot, which would present security problems.
In the list of hardware wallets appear Trezor Suite and Trezor ElectrumAs for the rest, other cold wallets such as Ledger, Coldcard and Archos, still do not seem to fit the new improvement for Bitcoin.
Regarding software wallets, apart from Wasabi and Sparrow, the list shows that BlueWallet, Samourai, Trust Wallet, Muun, among others, have also not added support for Taproot.
Regarding payment processors for Bitcoin, the only one that appears prepared for Taproot is BTCPay.
Listed exchanges that have not yet adopted the new solution include Bitfinex, Coinbase, Gemini, Hodl Hodl, and LocalBitcoins.
Full adoption of Taproot benefits the network
The Bitcoin community approved by consensus the implementation of Taproot starting next November, via Speedy Trial (ST). This mechanism sought to determine if the miners were ready for the activation of Taproot, as reported by CriptoNoticias.
Taproot, as explained in this medium, increase the privacy of BTC shipments by making single-signature and multi-signature transactions indistinguishable when analyzing the blockchain.
The adoption of Taproot by Bitcoin wallets, service providers and nodes is important so that users can benefit from this implementation.
However, until this moment, only 26% of Bitcoin nodes have been upgraded to be compatible with Taproot, which means that the rest have 4 months to implement the new solution.
According to Luke Dashjr., Editor of improvement proposals (BIP) in the Bitcoin code, it is important to update the nodes for Taproot to work correctly, as reported by CryptoNews.
Additionally, it is expected that with Taproot, both single signature and multi-signature transactions will look similar in signature, which would make them indistinguishable in a blockchain analysis.
Consequences of not accepting Taproot
For his part, the specialist Rusty Russell, considers that not complying with the adoption of Taproot, could activate attack vectors on Bitcoin.
That is, “if they are not updated and 50% of the mining power is not updated (not only signals, but updates its nodes), a miner could deliberately mine an invalid Taproot transaction in November and divide the network,” he explained. Russell.
Although he considers the chances of an attack occurring as low, he recommends that users “should not use Taproot until they are convinced that the vast majority will comply.”