Optimal Threshold Signatures in Bitcoin

Degraded multisignature transactions have been significantly enhanced by the 2021 Taproot upgrade in Bitcoin. Although it was feasible to implement these types of transactions with Segregated Witness (SegWit) version 0, Taproot offers improvements in both fee efficiency and privacy for users. This upgrade marks a pivotal advancement in Bitcoin's ongoing development, ensuring that transactions not only become more cost-effective but also bolster user privacy. By integrating degraded multisignature capabilities within Taproot, Bitcoin enhances its utility and security, making it a more attractive option for conducting complex transactions.