Currently, the bitcoin network does about 3-7 transactions per second. How much can taproot theoretically increase that?
Assuming a current throughput of 5 transactions per second, we get only about 150 million transactions per year. How can a population of 8 billion adopt the bitcoin standard if everyone wants to hold their own key?
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1I don't think it really matters how many transactions per second Bitcoin can do. No need to focus on that. Bitcoin is able to settle 'quickly enough' or 'cheaply enough', depending on what you personally want. There is absolutely no problem having slow transactions IMHO. Transactions are still far faster AND easier than transacting in bullion.– djangofanJun 4, 2021 at 18:28
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1 Answer
Currently bitcoin is about 3-7 transactions per second, how much faster can taproot theoretical increase it to?
I do not consider transaction per second useful for Bitcoin and use outputs per day: https://bitcoinvisuals.com/chain-output-count-day
1,000,000 outputs per day. So, 11 outputs per second.
Block space savings with Taproot:
1 MB per day with schnorr signatures: https://web.archive.org/web/20201214095704/https://www.advancingbitcoin.com/blog/evolution-signature-size-bitcoin/
50% less size for multisig inputs
Other improvements related to Taproot:
Who would benefit from Taproot deployment?
Does the Taproot update benefit all bitcoin users? or is it for a selective amount of people
Will "Taproot" replace Lightning Network?
let say with a current speed of 5 transactions per second, that is only about 150 million transactions per year, how can a population of 8 billion adopt the bitcoin standard if everyone wants to hold their own key?
Holding the key doesn't require block space. Transactions on-chain require block space which is limited and will always be limited so that everyone can run a full node and Bitcoin remains decentralized.
Bitcoin scales in layers: On-chain, Lightning Network, Sidechains (Liquid, Rootstock)