Taproot and Schnorr Signatures - Crypto Academy / S5W6 - Homework post for pelon53.

𝙶𝚘𝚘𝚍 day 𝚊𝚕𝚕, 𝚝𝚑𝚒s 𝚊 𝚗𝚎𝚠 𝚠𝚎𝚎𝚔 𝚠𝚒𝚝𝚑 𝚊 𝚏𝚛𝚎𝚜𝚑 𝚔𝚗𝚘𝚠𝚕𝚎𝚍𝚐𝚎 𝚏𝚛𝚘𝚖 𝚝𝚑𝚎 𝚝𝚎𝚊𝚌𝚑𝚒𝚗𝚐 𝚏𝚛𝚘𝚖 𝚖𝚢 𝚍𝚎𝚊𝚛 𝚙𝚛𝚘𝚏𝚎𝚜𝚜𝚘𝚛 @pelon53 𝚠𝚑𝚘 𝚖𝚊𝚍𝚎 𝚘𝚞𝚝 𝚝𝚒𝚖𝚎 𝚝𝚘 𝚏𝚎𝚎𝚍 𝚞𝚜 𝚠𝚒𝚝𝚑 𝚝𝚑𝚒𝚜 𝚟𝚒𝚝𝚊𝚕 𝚊𝚗𝚍 𝚝𝚊𝚗𝚐𝚒𝚋𝚕𝚎 𝚕𝚎𝚜𝚜𝚘𝚗𝚜 𝚝𝚘 𝚑𝚘𝚕𝚍 𝚘𝚗, 𝚖𝚎𝚊𝚗𝚠𝚑𝚒𝚕𝚎 𝚊𝚖 @kingworldline

INTRODUCTION

𝚃𝚎𝚌𝚑𝚗𝚒𝚌𝚊𝚕𝚕𝚢 𝚝𝚑𝚎 𝚠𝚘𝚛𝚕𝚍 𝚘𝚏 𝚝𝚑𝚎 𝚋𝚕𝚘𝚌𝚔 𝚌𝚑𝚊𝚒𝚗 𝚒𝚜 𝚐𝚎𝚝𝚝𝚒𝚗𝚐 𝚊𝚍𝚟𝚊𝚗𝚌𝚎 𝚊𝚜 𝚝𝚑𝚎 𝚍𝚊𝚢 𝚐𝚘𝚎𝚜 𝚋𝚢, 𝚊𝚜 𝚘𝚏 𝚝𝚑𝚎 𝚝𝚎𝚌𝚑𝚗𝚘𝚕𝚘𝚐𝚢 𝚝𝚑𝚎 𝚋𝚕𝚘𝚌𝚔𝚌𝚑𝚊𝚒𝚗 𝚘𝚙𝚎𝚛𝚊𝚝𝚎 𝚘𝚗 𝚐𝚎𝚝𝚜 𝚋𝚎𝚝𝚝𝚎𝚛 𝚎𝚟𝚎𝚛𝚢 day 𝚜𝚒𝚗𝚌𝚎 𝚝𝚑𝚎 𝚍𝚊𝚢 𝚒𝚝 𝚠𝚊𝚜 𝚒𝚗𝚒𝚝𝚒𝚊𝚝𝚎𝚍 𝚝𝚘 𝚎𝚡𝚒𝚜𝚝𝚎𝚗𝚌𝚎.

𝙷𝚎𝚗𝚌𝚎 𝚠𝚒𝚝𝚑 𝚝𝚑𝚎 𝚗𝚒𝚌𝚎 𝚐𝚎𝚜𝚝𝚞𝚛𝚎 𝚊𝚝𝚝𝚊𝚌𝚑𝚎𝚍 𝚝𝚘 𝚝𝚑𝚎 𝚋𝚕𝚘𝚌𝚔𝚌𝚑𝚊𝚒𝚗 𝚑𝚊𝚜 𝚜𝚑𝚘𝚠𝚗 𝚜𝚘𝚖𝚎 𝚖𝚊𝚗𝚢 𝚙𝚛𝚘𝚘𝚏 𝚘𝚏 𝚒𝚖𝚙𝚘𝚛𝚝𝚊𝚗𝚝𝚜 𝚝𝚘 𝚝𝚑𝚎 𝚎𝚗𝚝𝚒𝚛𝚎 𝚘𝚗 𝚝𝚑𝚎 𝚊𝚛𝚎𝚊 𝚘𝚏 𝚑𝚎𝚊𝚕𝚝𝚑, f𝚒𝚗𝚊𝚗𝚌𝚎 𝚊𝚗𝚍 𝚜𝚘𝚖𝚎 𝚖𝚊𝚗𝚢 𝚘𝚝𝚑𝚎𝚛 𝚘𝚗𝚎𝚜.

1- EXPLAIN IN DETAIL THE P2SH AND P2PKH, SHOW THE DIFFERENCES BETWEEN BOTH DIRECTIONS.

𝚃𝚑𝚎𝚛efor𝚎 𝚋𝚊𝚜𝚎𝚍 𝚘𝚗 𝚝𝚑𝚎 𝚏𝚒𝚛𝚜𝚝 𝚙𝚑𝚊𝚜𝚎 𝚘𝚏 𝚝𝚑𝚎 𝚚𝚞𝚎𝚜𝚝𝚒𝚘𝚗 𝚠𝚑𝚒𝚌𝚑 𝚍𝚎𝚖𝚊𝚗𝚍𝚜 𝚝𝚑𝚎 𝚎𝚡𝚙𝚕𝚊𝚗𝚊𝚝𝚒𝚘𝚗 𝚘𝚗 𝚝𝚑𝚎 𝙿2𝚂𝙷, 𝙷𝚎𝚗𝚌𝚎 𝚝𝚑𝚎 𝚊𝚌𝚛𝚘𝚗𝚢𝚖 𝙿2𝚂𝙷 𝚜𝚒𝚖𝚙𝚕𝚢 𝚖𝚎𝚊𝚗𝚜 𝚝𝚑𝚎 𝚙𝚊𝚢 𝚝𝚘 𝚜𝚌𝚛𝚒𝚙𝚝 𝚑𝚊𝚜𝚑 𝚖𝚎𝚊𝚗𝚠𝚑𝚒𝚕𝚎 𝚝𝚑𝚒𝚜 𝚠𝚊𝚜 𝚋𝚛𝚘𝚞𝚐𝚑𝚝 𝚝𝚘 𝚘𝚙𝚎𝚛𝚊𝚝𝚒𝚘𝚗 𝚘𝚗 𝚝𝚑𝚎 𝙰𝚙𝚛𝚒𝚕 2012.

𝙼𝚎𝚊𝚗𝚠𝚑𝚒𝚕𝚎 𝚝𝚑𝚎 𝚙𝚞𝚛𝚙𝚘𝚜𝚎 𝚘𝚏 𝚝𝚑𝚎 𝚎𝚡𝚒𝚜𝚝𝚎𝚗𝚌𝚎 𝚝𝚑𝚒𝚜 𝚒𝚜 𝚝𝚘 𝚐𝚛𝚊𝚗𝚝 𝚙𝚎𝚛𝚖𝚒𝚜𝚜𝚒𝚘𝚗 𝚝𝚘 𝚝𝚑𝚎 𝚋𝚒𝚝𝚌𝚘𝚒𝚗 𝚌𝚘𝚞𝚛𝚝𝚎𝚜𝚢 𝚒𝚗 𝚝𝚑𝚎 𝚍𝚎𝚜𝚒𝚐𝚗𝚎𝚍 𝚑𝚊𝚜𝚑 𝚘𝚏 script, which 𝚝𝚎𝚗𝚍𝚜 𝚝𝚘 𝚞𝚗𝚕𝚘𝚌𝚔 𝚝𝚑𝚎 𝚋𝚒𝚝𝚌𝚘𝚒𝚗, 𝚖𝚎𝚊𝚗𝚠𝚑𝚒𝚕𝚎 𝚝𝚑𝚎 𝚙𝚘𝚜𝚜𝚒𝚋𝚒𝚕𝚒𝚝𝚢 𝚘𝚏 𝚌𝚛𝚎𝚊𝚝𝚒𝚗𝚐 𝚊𝚗𝚍 𝚌𝚞𝚜𝚝𝚘𝚖𝚒𝚣𝚒𝚗𝚐 𝚢𝚘𝚞𝚛 𝚘𝚠𝚗 𝚜𝚌𝚛𝚒𝚙𝚝 𝚒𝚜 𝚝𝚑𝚎𝚛𝚎, 𝚑𝚎𝚗𝚌𝚎 𝚝𝚑is 𝚌𝚊𝚗 𝚋𝚎 𝚜𝚑𝚊𝚛𝚎𝚍 𝚊𝚖𝚘𝚗𝚐 𝚝𝚑𝚎 𝚒𝚗𝚝𝚎𝚛𝚖𝚎𝚍𝚒𝚊𝚛𝚢.

INFORMATION ON HOW THE P2SH WORKS

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Hence this is basically configured to lock scripts that have the hash content, hence this is customized in a way that is unique on its own thereby locking its scripts which is known as the script hash as well, below are some examples of what I just said.

Meanwhile based in unlocking scripts which has your full details, meanwhile in the order way round this is called redeem script, which is backed with the opcode, hence to free it means to unlock

Then talking about the ScriptSig, base in this aspect means unlocking it quite different from that script public key hence the redeem script is pictured as the P2MS hence the proceeding signature can be used in unlocking it.

As shown on the above ScriptSig, there are two main signatures, of which the processing signature needs to support the redeeming signature before it can be unlocked.

ADVANTAGE

Pay to script hash was the second Bitcoin script which was initiated, meanwhile the aim of the second initiation was ro amend the previous issue the formal script was having.
Meanwhile with the creation of this new script calls for many amendments of the previous one which gave it more advantage as shown below.

•SECURITY
Meanwhile security is needed in all we do, in order keep us safe from theft, hence the cryptographic grants sufficient security that has the standard over pay to public key hash.

•EAZY TRANSACTION
Here some protocol logistics are being skipped, hence the only expected thing is to forward the address format, thereby making it easy and simple.

•MULTISIG
This the main reason behind the pay to script hash in on the accessibility of the transaction backup.

•SEGWIT AND NON SEGWIT
Hence with bitcoin having a private key which is used in creating wallets, therefore the pay to script hash is a format for the segwit, still accessible and durable with the non segwit.

WHAT IS P2PKH

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Therefore the P2PKH is expressed as pay to public key hash, hence this provides assistance as regard to securing transactions with bitcoin, and as well its functionality.

Hence here are some basic terminology used in transaction building, which comprises the input, and the locktime, below are the details below.

•THE INPUT: This is known as a sequential number, more like the unlocking script which in the other way round is known as the SCRIPTSIG.

THE OUTPUT: This is the real value of the 𝚝𝚘𝚝𝚊𝚕 𝚟𝚊𝚕𝚞𝚎 being spent individually, hence this is known as the script public key.

THE LOCKTIME: This is known by its block validity of a particular transaction.

DIFFERENCE THAT EXIST BETWEEN P2PKH AND P2SH

P2SH
P2SH is an acronyms to Pay to script hash, therefore this is the new type of address which is structure as P2PKH with a lot of individual differences , hence the pat to script is address which actually starts with "3" in place of "1" of the pay to public key hash.
Hence this is more complex in terms of functionality than that of the previous kind of address.
On spending bitcoin via pay to script hash the recipient must provide a script which is expected to correspond to the script hash and data as well which makes it legit.
Therefore it is known that using the pay to script hash is more less in transaction fee.
Example: 3GRdnTq18LyNveWa1gQJcgp8qEnzijv5vR

P2PKH
Hence this is also known as the legacy address which was the first and the old address format which actually starts with the numerical value of digit "1".
Meanwhile this actually has 26 to 36 characters.
Hence the fee on the pay to public key hash is higher compared to the segwit address, hence since it is an outdated address they always have larger sizes.
Example:
1A1zP1eP5QGefi2DMPTfTL5SLmv7DivfNa

2.-IT IS REQUIRED TO TRANSFER 10 BTC THAT BELONG TO A 3 OF 5 MULTI-SIGNATURE PORTFOLIO, TO THE MTC COMPANY, FOR THE PURCHASE OF SOME EQUIPMENT.

We all know that the multisig signature is a digital signature which grants authentication on document signing.
Meanwhile as regards to the question where we have 5 people from a particular project, hence the five are all having their private keys, hence the three there are expected to spend their cash where by all has the franchise to donate courtesy to the project designed address. Hence with the private key everything seems to be visible to the blockchain.

USE THE SCRIPTSIG AND THE SCRIPTPUBKEY TO EXPLAIN THE STEPS THAT ARE FOLLOWED.

Hence to work this out means that the 10BTC belongs to the 3 to 5 multisig signature which means that 5 people are holding the BTC private keys while the 3 are expected to and mandated to spend there's based on cash, hence explaining the various steps using scriptsig means that P2MS is regarded as scriptsig.

Therefore, since 5 different individuals are the one holding the BTC private, that tells us that it will demand five individuals that have the different scriptsig for unlocking signatures, hence to unlock the 10 BTC involved before the three can spend it, is to purchase the necessary equipment for the firm.
Hence making use of the scriptpublickey tells us the exact period of time the 5 Individuals tend to spend it off .
Therefore the scrriptpublickey is made to work as the public keys, hence they all have their role to play whereby the 5 which have the scriptpublickey are to make solution transactions while the three are expected to spend the cash in buying equipment for the firm, meanwhile the keys are vital.

EXPLAIN WHAT HAPPENS IF THE TRANSACTION IS MADE USING SCHNORR SIGNATURES?

Hence over the past years of the existence of Bitcoin, this currency have being facing a lot of challenges as the first crypto currency meanwhile with the initiation and existence of the Taproot seem to arrest the challenges which have upgraded Bit Bitcoin, hence the main purpose of the Taproot is to modify the Bitcoin script work in place to make the scalability, security and the security more strong and secured.

Hence with the existence of the Taproot and the SCHNORR firm has helped and improved Bitcoin a lot in the area like that of scalability, privacy, and security as well.

3.- Why do you think that Taproot and Schnorr firms will help the privacy of the Bitcoin network? Explain.

Meanwhile from the time Bitcoin has been in existence, it has been o̤n̤ regular issue pertaining to hardfork and other issues, hence with the introduction of Taproot has upgraded the Bitcoin as a currency.
Hence Taproot technology has changed the working pattern thereby improving its specialisation on the scalability, privacy, security and many more.
Therefore the problem mentioned above has been a challenge that the Bitcoin network has been facing since its creation, hence with the existence of the Taproot and S̤c̤h̤n̤o̤r̤r̤ have proven a helping hand to the Bitcoin network.

4.- USING THE BLOCKCHAIN DEMO, WRITE EXACTLY THE FOLLOWING MESSAGE: SCHNORR SIGNATURES, GENERATE THE MESSAGE SIGNATURE AND VERIFY THE MESSAGE. THEN DELETE THE FIRST CHARACTER FROM THE MESSAGE SIGNATURE AND CHECK AGAIN. WHAT HAPPENED?

To answer this question we are asked to use the demo for the signature, therefore I will proceed by signing in the SCHNORR signature.

Hence the first thing to do is to visit the web address click here
Next, I proceeded by clicking on the signature

•Then after that progression I got my Private key as shown on the below screenshot.

•Then there was a space to click which enabled me to sign in, thereby reading the message and unfolding it.

•Then after the previous point where I entered my Schnorr signature, I signed in

•Then quickly click on verify which got it verified by showing the background green colour.

As you can see on the screenshot I actually have my public key, and signature all being verified.

• Then i remove the first character from the signature i giit ref background showing unvarified or error and here is the result of all.

1

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2

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3

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4

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CONCLUSION

In conclusion the pay to script hash with the acronyms P2SH was the first first script hash on bitcoin to exist which actually lacks some potential before the introduction of pay to private key which is known with the acronym has helped to make sure that Bitcoin transaction to run on a smooth base on the various areas that the bitcoin is having some challenges.

Therefore these innovations have brought change and improvement in terms of security and other.

Thanks to my dear professor @pelon53 who has brought this wonderful lesson across our knowledge, it is my pleasure to be part of this.

Thanks and merry christmas sir.