The report discusses the adoption of Taproot, Bitcoin’s significant upgrade that went live in 2021. The adoption was not substantial until the start of 2023, with Ordinals shifting the demand for Taproot. Approximately 10% of transactions are now spending a minimum of 1 Taproot input. The report also highlights the potential of Bitcoin as a data availability layer for rollups, a concept being explored by RollkitDev. This could provide a rollup with the same re-org and double-spend resistance as Bitcoin itself.
- Monitor the Adoption of Taproot: The adoption of Taproot is increasing, with about 10% of transactions now spending a minimum of 1 Taproot input. This trend is worth monitoring for potential investment opportunities.
- Watch for Developments from RollkitDev: RollkitDev is exploring the use of Bitcoin as a data availability layer for rollups. This could enhance the security of rollups and is a development worth watching.
- Consider the Long-Term Security of Bitcoin: As the block subsidy declines, Bitcoin needs to transition to a fee-based model. The use of Bitcoin as a data availability layer could be a potential solution to long-term security.