Bitcoin Cash May upgrade to include Schnorr signatures, confirms devs
The May upgrade for Bitcoin Cash otherwise known as Bitcoin ABC will add multiple features to the Bitcoin cash blockchain. In a video meeting of Bitcoin Cash developers posted on YouTube, the devs discussed the final items to be included in the May upgrade. Two major additions to the Bitcoin Cash network as a part of the new upgrade is the SegWit recovery and Schnorr signatures.
SegWit recovery and Schnorr signatures will supposedly allow more private interactions on the network as well as better transaction verification.
Implementation of Schnorr signatures has been discussed for years. Bitcoin developer and Blockstream co-founder, Peter Wuille prepared a draft proposal citing benefits of including Schnorr signatures in the Bitcoin Cash [BCH] protocol.
Bitcoin uses ECDSA [Elliptic Curve Digital Signature Algorithm] for authenticating transactions. As a Bitcoin hard fork, Bitcoin Cash utilizes the same algorithm. ECDSA required more transaction data compared to Schnorr. Schnorr signatures allow multiple transactions to be “batched” into a single transaction. These signatures also allow the execution of complex off-chain smart contracts and discard signature malleability. Signature malleability occurs when a person is able to compute a signature on an input transaction by referring to the signature of a related transaction.
Schnorr signatures allow more private interactions with features like smart contracts, payment channels and atomic swaps. Once the signatures are implemented all transactions will appear as a regular transaction on the network. Therefore, contracts can be settled, payment channels can be utilized and atomic swaps can be employed without the immediate detection of blockchain data analysts as all transactions would appear as normal transactions. This awards more privacy to the network users.
The other important change after the May 2019 upgrade is the SegWit recovery. SegWit recovery helps users to recover coins sent through SegWit transactions to other BCH addresses. However, users will have to employ a miner’s help to recover BCH.
Bitcoin Cash is set to upgrade every six months. This implies that miners and nodes connecting to the network should upgrade their software to remain on the network. Three months before the actual upgrade new features are “frozen” into the code. This allows time for the developers to test the new implementations and fix bugs.
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