21Relay
Advanced curriculum
Lesson 618 minReviewed July 2026

Taproot

Taproot combines Schnorr signatures with key-path and script-path spending to make many advanced spending policies more efficient and less revealing.

Learning outcomes

By the end of this lesson, you should be able to

  • Taproot uses BIP340 Schnorr signatures.
  • Cooperative spends can use a compact key path.
  • Script paths reveal only the condition used.
  • Taproot improves privacy properties but does not guarantee anonymity.
1

Schnorr and key-path spending

BIP340 Schnorr signatures provide a simple, provably secure signature scheme and support useful aggregation techniques. A Taproot output commits to an internal key and, optionally, scripts.

When all required parties cooperate, they can often spend through the key path so the blockchain sees a compact signature rather than the full policy.

2

Script-path spending

Alternative conditions are arranged in a Merkle tree. A script-path spend reveals only the executed leaf and the hashes needed to prove that leaf belongs to the committed tree.

3

Benefits and limits

Taproot can reduce fees and disclosure for complex wallets, but it does not make transactions automatically private. Wallet construction, address reuse and surrounding transaction patterns still affect privacy.

SegWit and Taproot

Two upgrades, different improvements

Compare witness separation with Taproot's Schnorr signatures and key-path or script-path spending.

1

Separate witness

SegWit moves signature data into a witness structure and fixes legacy transaction malleability for SegWit spends.

Key takeaways

  • Taproot uses BIP340 Schnorr signatures.
  • Cooperative spends can use a compact key path.
  • Script paths reveal only the condition used.
  • Taproot improves privacy properties but does not guarantee anonymity.

Lesson recap

Check what you learned

Reveal each model answer, then honestly mark whether you understood it or need another review.

1 of 3

Recall

What must a Taproot script-path spend reveal?

References

Further reading

Lesson progress

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