What happened?
Bitcoin core developer, Jimmy Song critiqued that the Taproot upgrade has overlooked the ‘social attack surface’ which allowed spam-like activities to inundate the Bitcoin network. According to Song, Taproot had unintended results enabling non-financial transactions at an augmented scale, with particularly poor user experience evidenced in multi-signature setups.
Who does this affect?
This scenario notably affects the Bitcoin community, which currently finds itself in a growing ideological divide. Figures like Adam Back, Dennis Porter and Luke Dashjr advocate for Bitcoin’s role strictly as a peer-to-peer electronic cash system. Conjunctively, there are proponents of Ordinals and Runes, such as the pseudonymous developer Leonidas, who argue that all valid transactions, whether financial or not, should be welcomed.
Why does this matter?
This matter holds significant market impact as it underpins a shifting attitude toward Bitcoin’s purpose and function. The uncertainty and discord within the community have led to an increased use of Bitcoin Knots, a competing implementation. This division within the community, as well as critiques against upgrades like Taproot, could potentially influence market confidence and the future usage of Bitcoin.