Taproot is being hailed as one of the most intriguing Bitcoin updates since the addition of SegWit to the cryptocurrency's blockchain. It will be an instantiation of a soft fork, with the goal of improving both privacy and other features associated with increasingly sophisticated transactions.

Its purpose is to alter the way Bitcoin scripts run in order to increase the blockchain's privacy, scalability, and security. Taproot is intended to accomplish this by providing Bitcoin with a signature mechanism known as Schnorr signatures. Claus Schnorr created Schnorr Signatures, which have the advantage of taking numerous keys from a complex Bitcoin transaction and producing a single signature.

At the moment, Bitcoin transactions can take advantage of a variety of complicated features, such as timelock and multi-signature. Anyone can discover transactions that employ these complicated functions in the absence of Taproot. All of these will be private after the Bitcoin blockchain has been upgraded with the Taproof implementation. These complex transactions will be disguised as a single transaction, strengthening Bitcoin's privacy.

Taproot even allows you to conceal the fact that a Bitcoin script has been executed. Anyone watching the blockchain would only see peer-to-peer transactions, even if more advanced mechanisms were used.