Coinbase unveiled a new feature for its users to help them route their BTC transactions. Users can now transmit Bitcoin to Taproot addresses, according to a Coinbase announcement.
The move puts Coinbase in tandem with its peers OKX, Binance, and Kraken as well as other platforms, who had already integrated this feature long back.
In November 2021, Taproot was implemented as a significant enhancement to the Bitcoin network with the goal of enhancing its anonymity.
In contrast to the original “bc1q” address, Taproot offers a new address type that begins with “bc1p” which can make complex transactions appear as simple ones.
What Is The Taproot Upgrade?
Since its launch in November 2021, Bitcoin has seen some of the most significant network updates. Also known as Taproot, the update expedited and reduced the cost and processing time of transactions.
The three Bitcoin Improvement Proposals (BIPs) that outline the three different modifications to the Bitcoin protocol make up the Taproot update. These BIPs brought new, private, flexible, and effective methods of exchanging Bitcoin.
Users can issue assets on the Bitcoin blockchain and the Lightning Network with the Taproot asset protocol. Compared to other attempts to add other assets on top of Bitcoin, this asset issuance can be carried out in a more scalable and private manner.
Coinbase Stock Still Struggles To Trade Up Despite Good News
Despite the announcement of the new feature of Bitcoin to Taproot transactions, Coinbase stock still struggled to find pace. The shares of the company fell 1.4% on Tuesday and ended trading down 0.7% by the close of the day. The stock recently traded at $166.55, having previously traded as low as $166.01.
This change is behind the market trading, with a daily rise of 0.97% for the S&P 500. Simultaneously, the tech-heavy Nasdaq climbed 1.45% while the Dow added 0.3%.
The sloppy trading could be an indication that investors at this time are expecting more from the firm in terms of Coinbase’s services and development. Coinbase Taproot transaction integration came way later than its peers giving it a disadvantage for years altogether.