Bitcoin Core 22.0 is out; here’s what’s new
The latest version released is the first to support the upcoming Taproot upgrade while also offering several other improvements and updates over previous Bitcoin Core versions.
About Bitcoin Core
Bitcoin Core is an open-source Bitcoin client software. It is a direct descendant of the original Bitcoin software client released initially by Satoshi Nakamoto after he published the mythical Bitcoin whitepaper.
Bitcoin Core consists of both “full-node” software for fully validating the blockchain as well as a BTC wallet. The project has an extensive open-source developer community with many casual contributors to the codebase. There are many more who contribute research, peer review, testing, documentation, and translation.
Make sure you visit Bitcoin Core’s Gitbook and download Bitcoin Core 22.0.
Bitcoin Core 22.0 notable updates
Among the changes introduced with the latest version are improvements to the build system, files, utilities, BTC wallets, graphical user interface (GUI), and RPC reinforcement.
We will sum up the most relevant updates below in a non-tech language, but be sure you can check the complete release notes to learn more about Bitcoin Core 22.0 in depth.
New, updated RPCs
Essentially, an RPC or Remote Procedure Calls describes a protocol that one program can use to request a service from a program located in another computer on a network without having to understand the network’s details. Authenticated clients use Bitcoin RPC to issue commands to send transactions, get status, and other purposes.
In 22.0, many of these RPC commands have been optimized and enhanced, aiming for better speed, data accuracy, and network security.
P2P and network changes
Bitcoin users can be identified by looking into the network and tracking the origin nodes of specific transactions. The IP addresses associated with these nodes can then be tied with real-world identities. To prevent this, in addition to the already supported Tor network, Bitcoin Core users will now have the option to connect to the Bitcoin network I2P.
I2P or Invisible Internet Project is a fully encrypted private network layer protecting users’ activity and location. People often use the network to connect without worrying about being tracked, their data being collected, or when they need to be discrete or are doing sensitive work.
It’s also important to note that Bitcoin Core 22.0 removes support for Tor V2 hidden services in favor of the newer version, Tor V3 only.
SegWit multi-signature enlargement
SegWit or Segregated Witness is a process that reduces the size needed to store transactions in a block. Witness data, which previously took up a lot of space in each block, became serialized as just one unit. SegWit allows more transactions to be stored in each block, leading to less load on the network, faster transactions, and lower fees.
On the other hand, when we say that a wallet supports multi-signature or multisig outputs, we are talking about one that requires multiple keys to authorize a Bitcoin transaction. This differentiates from “regular” wallets, which work with a single signature from one key.
Multi-signature functionality is used in many L2 solutions and has many advantages and purposes, like:
- Dividing the responsibility for possession of bitcoins among multiple people.
- Avoiding single points of failure, making it substantially more difficult for the wallet to be compromised.
- M-of-N backups, where the loss of a single seed doesn’t lead to loss of the wallet.
The latest Bitcoin Core update will now support the creation of multisig outputs for up to 20 keys in Segregated Witness (Segwit) outputs, 4 more than the 16 it previously supported.
Wallet updates
Bitcoin Core 22.0 is the first to support full GUI or graphic user interface support for external signers such as hardware wallets instead of just CLI or a mix of CLI/GUI. These require an external tool like Bitcoin Core’s official Hardware Wallet Interface (HWI) to be installed and configured.
Hardware wallets are designed to secure private keys better than any other wallet. They enable users to sign transactions without the private keys ever leaving the device or connecting to the internet. However, hardware wallets still need to be combined with a software wallet to interact with the Bitcoin network. By integrating and using HWI, users will now be able to connect and use their Bitcoin Core wallet through other hardware wallet devices.
Taproot support
The community has very high expectations about Bitcoin’s new Taproot upgrade activating this November. Bitcoin Core 22.0 will validate the new Taproot rules and check all Taproot transactions for validity according to the new protocol parameters.
Additionally, the Bitcoin Core wallet will support the creation of basic Taproot outputs. Bitcoin Core users will be able to accept payments to Taproot outputs that can be spent with a single private key. However, that is protected using the Taproot logic.
“This doesn’t actually offer many benefits (if any) compared to what was already possible with the Bitcoin Core wallet software before; the more complex types of smart contracts that Taproot supports will presumably be supported in future Bitcoin Core releases,” wrote Aaron Van Wirdum.
Version 22.0 will also support the creation of Taproot-specific descriptors, which identify Taproot outputs. This categorization could benefit applications that rely on the Bitcoin Core software, like (external) wallets.
Package relay testing
Another important innovation in Bitcoin Core 22.0 is a “testing feature” that allows nodes to check if transactions would be included in a block by submitting several transactions as a single package.
Essentially, there are different parameters to define if a transaction is included in the mempool and a block. Nodes validate transactions and broadcast them to the network and the mempool if they have a high enough fee. Miners, on the other hand, don’t consider a single transaction’s fee alone. They also look at whether that transaction would “unlock” others. The fee amount considered is then the sum of all the transactions (original and subsequently “unblocked”) combined.
Using this function, users can bump up low fees of transactions stuck in the mempool and encourage miners to pick them up and include them in a block. This method is called Child-Pays-For-Parent (CPFP) and can be very useful, particularly in L2 protocols like the Lightning Network. However, the first transaction still needs to include a high enough fee for nodes to broadcast it to the mempool, creating a bottleneck on the network.
Package relay is a project that aims to solve this. It would enable nodes to broadcast transactions in packages. The fee considered for mempool inclusion would then be the sum of all transaction fees in the package, just like it happens for miners and blocks, instead of individually.
Bitcoin Core 22.0 does not yet include this but a testing capability. However, it is a good step towards realizing package relay functionality.
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