Author: vjudeu at gazeta.pl 2022-05-01 16:18:40
Published on: 2022-05-01T16:18:40+00:00
Taproot is an upcoming upgrade for Bitcoin that will allow users to protect their public keys with passwords. This can be achieved by combining a normal Taproot-based public key, generated randomly, with a second public key derived from a password chosen by the user. The second public key is created by executing SHA-256 on the password and using the result as a private key, resulting in a brainwallet. The two public keys are then combined in a Schnorr signature to form a 2-of-2 multisig, where the first key is random and the second key is the brainwallet derived from the user's password.By default, all keys within a wallet can be protected with the same password, but it is possible to choose different passwords for different addresses if necessary. Descriptors can handle this feature in the same way they handle any other 2-of-2 multisig. This new functionality provides an added layer of security for Bitcoin users, as it allows them to protect their funds with both a randomly generated key and a password-derived key.
Updated on: 2023-05-22T19:53:57.760212+00:00