.png)
Hello everyone, I welcome you all once again to another great week of the Steemit Crypto Academy.
Here we are earlier again in week 6 of the fifth season, it's been a pleasing season thus far. on today's topic, I will be giving insight on one of the Privacy concepts known as "TAPROOT AND SCHNORR SIGNATURES", the course was tutored by professor @pelon53, you can as well join me and study from the Page.
Below is my submission to the assignment, Stay on, and wish u happy reading!!
What is P2SH
P2SH is simply abbreviated to Pay-to-Script hash which is some sort of high-level mode of making Bitcoin exchange and other comparable cryptographic forms of money. This is unlike P2PKH, as it permits the source to submit assets to a hash.
The knowledge of P2SH permits users to send BTC without stressing over how a beneficiary opens admittance to the payment, for example, it might be through a passphrase or with multi-signature.
Pay to script hash likewise gives a strategy to users to put the obligation of paying extra network charges on the beneficiary rather than themselves. Before the enactment of P2SH, users had no normalized method for carrying out these exchanges. P2SH limitlessly improved on the interaction through easy to-utilize script hashes and recognizable Bitcoin wallet address structures.
Advantages of P2SH
Multisig: The principle use case for the Pay to Script hash is the capacity to effectively uphold multi-signature exchanges. This can give additional security to a gathering of people or organizations that need to guarantee that nobody individual can move or take BTC from a common wallet.
Computationally Efficient: P2SH scripts are more modest than other scripts. As P2SH implies less RAM is required for the UXTO set, which can assist with speeding up exchange approval.
Security: Although P2SH exchanges, as a rule, incorporate a profoundly complicated arrangement of directions, cryptographic hashing guarantees that this content keeps up with a similar degree of safety as P2PKH.
More straightforward For Senders: Senders don't bear the weight of composing complex rationale for the benefit of beneficiaries. A P2SH exchange can be executed just by shipping off a standard location design that beginnings with the number '3'.
What is P2PKH
P2PKH is abbreviated as Pay-To-Public-Key-Hash which as well as a mode of transaction in the cryptography form of money, The P2PKH only requires verification of responsibility from the collector without users giving out their full public address.
By using P2PKH, an exchange is sent straightforwardly to the public location, P2PKH, as the name proposes, hashes the public objective address. This gives greater security to P2PKH exchanges for sending and getting assets on the Bitcoin blockchain. The public key stays protected for different clients.
The P2PKH address is known to have always started with "1", so With the initial two characters of this address, it is possible to distinguish which network the wallet has a place with. The inherent checksum keeps assets from being sent off to an invalid address.
Now, let's discuss the advantages that came with P2PKH
Advantages of P2PKH
Simplicity: The P2PKH is advantageous in a way that the hash address is being more modest, contains 20 bytes as it is simpler to print and more straightforward to install into little stockpiling mediums like QR codes.
Mistake Detection: The P2PKH mode of transactions can easily detect an error in a transaction as it is accomplished through a checksum that helps the wallet programming distinguish a grammatical error and keep assets from being lost for eternity.
| Differences | P2PKH | P2SH |
|---|---|---|
| Adress | Pay-to-Public key Hash address starts with the hash number "1." | Pay to Script Hash address starts with the hash number "3. |
| Transaction Fee | P2PHK exchanges fees are higher due to its compatibility with Old Adress. | P2SH uses Segwit address causing the transaction fee to be minimal. |
| Message compatibility | P2PKH address is Ready to sign messages and get confirmed in each wallet. | P2SH is not ready to receive its messages confirmed in each wallet. |
| Wallet compatibility | P2PKH is compatible with each wallet | supported and workable with an old wallet. |
| Characters | P2PKH uses 26-36character long as address. | P2SH uses a 34-character long address. |
Question 2 - It is required to transfer 10 BTC that belong to 3 of 5 multi-signature portfolios, to the MTC company, for the purchase of some equipment
Use the ScriptSig and the ScriptPubKey to explain the steps that are followed.
When Using the Scriptsig, the thing that we should be highly aware of is that unlike the other Script segment of transaction this uses the OP_CheckMultiSig to confirm or let me say verify the address of 3 out 5 users instead and this then gives authority to the locked funds giving the users the chance to receive there asset. Technically, assuming there are 5 users we tend on sending 10 BTC to, then the address automatically authorizes the transaction if 3 out of the 5 Scripts matches which afterward, the transaction is processed, and each individual receive their asset to their wallet without revealing or giving out there address.
The ScriptPubKey is the next method the Scripting Transaction passes through which thus confirm the address code by using the OP_HASH160 to verify each 5 users address, just as I said earlier that scriptseg verify 3 to pass transaction, but the scriptpubKey verifies Public keys of the 5 individuals instead before making the transaction of BTC, so if the Hash code of the Scriptkey verifies, and as well the ScriptPubKey correlates, afterward that means the transaction of the 10BTC will then be received by the 5 users.
Explain What happens if the transaction is made using Schnorr signatures?
The Schnorr is a concept of making bitcoin transactions in a group, simply because the multiple ways of making transactions are sluggish and kind of slow, which is why the Schnorr signature was implemented.
The SchnorrSignatur works in a way that 5 traders at a time can perform a transaction without revealing their public keys but rather present their 5 signatures, this is achieved in other to keep each user address safe and hidden and as well without knowing who exactly did make the transaction.
What happens when a transaction is made using the Schnorr signature is that, unlike scriptpub key where verification of 3 out of 5 must be matched, in Schnorr, the signature of the 5 individuals must be matched with every 5 addresses authorizing the signature before the asset could be transferred.
Question 3 - Why do you think that Taproot and Schnorr firms will help the privacy of the Bitcoin network? Explain.
The Taproot and Schnorr firm is a new project in the bitcoin network which many users are still trying to find their way to understand. The Schnorr Signature has improved the level of security in the bitcoin network, why?
As the illustration, I made earlier, where I explained that with the Scripting users don't need to reveal their keys before making a transaction but instead send it to a multi-signature which then passes the transaction to the destined wallet provided all the requirements and the hashes are met.
We could see this as one of the major advantages of transactions as this lets the bitcoin network be more decentralized and also increases the scalability of the network, just as we know that the bitcoin has a problem of delivering transactions at an instant, which with this, Transaction can be faster and also easier as this technique is very easy and straight forward.
I believe I could always emphasize the word privacy as this Schnorr signature gives users info lots of privacy including the sender and receiver, when making a transaction using the Schnorr signature, both the address of the sender and receiver are hidden meaning the sender send through a Schnorr signature whereby the receiver receive the funds through the Scriptpubkey provided the Scriptkey matches, with this, we could see that both the sender and receiver are on the safe side of exchanges as the tracing back of this transaction is impossible both users are hidden and as well safe from external hacks. with this, I believe the Schnorr signature and Taproot firms have helped Bitcoin privacy.
Question 4 - Using the Blockchain Demo, write exactly the following message: Schnorr Signatures, generate the message signature, and verify the message. Then delete the first character from the message signature and check again. What happened? Explain. Screenshots required.
For this task, I will be using the Blockchain Demo website to carry the Question
- Firstly, we log in to the website Blockchain Demo which then launches us to the sign page directly, afterward, we type in Schnorr signature in the space provided in the message tab, then afterward we click on "Sign" to generate the message signature.
Then after clicking the sign, the message signature should be delivered in the message signature box.
Afterward, we click on the next tab which is verify to verify the message then we lick on to verify which green page did pop-up showing that the signature is valid and correct.
Then delete the first character from the message signature and check again
By deleting the first character leaving the message at schnor signature, then I click on to verify which afterward the page turns red showing that the message doesn't match the signature, which proves that the transaction wouldn't have been processed simply because the signature doesn't match.
The bitcoin blockchain has been considered to suffer the blockchain trilemma as the blockchain had suffered enough with scalability. bitcoin unlike others has been known to deliver transaction at a slower rate where it's only possible for the bitcoin network to deliver as many as 12 transactions per second which thus proves the sluggishness with the network as there get to be a scenario where users had to queue before their transaction can be passed as a case whereby other transactions has to be completed before the qued transaction comes up. which is where the schnorr signature comes in.
The Schnorr signature solves the scalability problem the bitcoin is facing and as well enhance the security of the bitcoin network, the signature method keeps users' adress hidden, and as well the transaction gets to be combined and executed once. with the improvement of Taproot and Schnorr signature, I believe it's in due time before the bitcoin network gets to solve its problem of scalability and has an improvement to bitcoin privacy.
Here comes the submission to my assignment has I have been able to complete the required task, Thank You Professor @Pelon53, it's indeed an overwhelming course which I hope I get to participate in your coming task.
Steemit Cryptography Student: @badmus-official