Analysis of Taproot Consensus: The most native and decentralized BTC L2 solution

**Taproot Consensus is the most native and decentralized BTC L2 solution available. **

Taproot Consensus is a BTC L2 solution built entirely on Bitcoin's native technology, and its core components are Schnorr Signature, MAST Contract, and SPV Node Network (full name Bitcion Simplified Payment Verification Node Network).

Among them, Schnorr Signature and MAST Contract are the core technologies of the Bitcoin network introduced by the Taproot upgrade in 2021, and SPV Node Network, also known as the simple payment verification node network, is essentially a network composed of Bitcoin light nodes, which is the simple payment verification scheme explained by Satoshi Nakamoto in Section 8 of the Bitcoin white paper. This means that even if some nodes (Bitcoin light nodes) do not have a complete transaction record, they can easily and securely verify payments.

So, how does Taproot Consensus work?

First of all, Schnorr Signature can expand the number of Bitcoin multisig addresses to 1,000, i.e., 1,000 Taproot wallet addresses can be used to jointly manage the same BTC asset, and efficiency, security, and privacy can be guaranteed. The traditional Bitcoin multisig based on elliptic curve signature can only have a maximum of 15 addresses, while Schnorr Signature can achieve sufficient decentralization of multisig addresses.

However, it is not enough to realize the decentralization of multi-signature addresses, but also to realize the automation and intelligence of signatures, that is, to realize code-driven, rather than relying on people to sign.

Think about it, if a BTC L2 still needs a group of people to sign the address where the bitcoin is hosted to perform the leap in and out, how inefficient is it, and how can its security be guaranteed?

Therefore, after the decentralization of multisig addresses is realized, MAST Contract must be introduced to realize the automation and codification of signatures.

MAST Contract is also one of the core technologies introduced by the Bitcoin Taproot upgrade, the full name of MAST Contract is Merkle Abstract Syntax Tree Contract, that is, Merkle abstract syntax tree contract, which uses Merkle tree to encrypt complex lock scripts, and its leaves are a series of scripts that do not overlap with each other (for example, multisig or timelock). When spending, only the script in question and the path from that script to the root of the Merck tree need to be disclosed. It can be simply understood that MAST Contract is a smart contract that can process multi-signature payments running on the Bitcoin chain (although it is different from the smart contract of Ethereum, it can play a smart contract effect when applied to Bitcoin Schnorr multi-signature)

With MAST, the intelligence, automation, and codification of Schnoel's signature can be realized, that is, the concept of multi-signature is eliminated here, and the code instruction is replaced by it. This is a very important point.

So, who's going to give the instructions? The SPV Node Network is going to give the orders.

That is, a network of Bitcoin light nodes running on the BTC layer 2 network. Relying on the consensus of the BFT network to drive the MAST Contract to issue instructions, not driven by any organization or person, this achieves complete decentralization. Why use SPV Node Network instead of ordinary POS node network? Because Bitcoin Light Node can synchronize the data of the first layer of Bitcoin, and can easily and securely verify the payment without complete transaction records, that is, to achieve SPV (Simplified Payment Verification).

To sum it up:

Schnorr Signature expands the number of Bitcoin multisig addresses to 1,000 and realizes the decentralization of multisig addresses.

MAST Contract realizes the codification of multi-signature management, which does not rely on people to sign, but relies on code driven.

SPV Node Network realizes the multi-signature driven by the consensus of the Bitcoin light node network, and fully realizes the decentralized cross-chain and management of Bitcoin.

**Taproot Consensus=Schnorr Signature+MAST Contract+SPV Node Network, which is currently the most native and decentralized BTC L2 solution. **