The way Bitcoin works in the blockchain is based on the Elliptic Curve Digital Signature Algorithm (or ECDSA), which allows you to get a public key from a private key, but the reverse process is considered very difficult and practically impossible. Schnorr Signatures is alternative of ECDSA to create more secret structure, which we will examine in detail in this article.
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Digital signatures are a type of signature that allows you to receive a message or send an encrypted address to a specific person in cyberspace using public and private keys. Important applications of digital signatures include sending and receiving messages on the Internet without being read by others.
In Bitcoin, you send a digitally signed message for every transaction you make. When this message reaches the blockchain nodes, each node checks the ECDSA separately and confirms the transaction if it matches your digital signature.
What are Schnorr signatures?
Schnorr Signatures is a general structure of different types of digital signatures and is in Cryptocurrency transactions. This structure is better than the ECDSA system and has more security.
Benefits of Schnorr Signatures
In general, Schnorr signatures have many advantages over other digital signature structures. Much more security and simplicity are reasons why this type of digital signature is widely used in digital currencies. Schnorr signatures have a linear structure.
Suppose you want to create a Multisignature transaction between multiple people. You received the bitcoin from the first person, you want to give it to someone else, also the third person wants to send it to other people. If this process increase, the cost, and volume of the block also increase, so both the transaction speed and the transaction creation cost will increase. But the solution is in Schnorr signatures.
If you use a Multisignature transaction in the blockchain and create the Schnorr signatures digital signature structure, all the information moved between a few nodes is sent and received as a single transaction. the block cost decreased due to the shorter sending and receiving strings and taking less volume in the block. Finally, the single transaction string is more secure and cannot be easily decoded.
When Schnorr Signatures will use in Bitcoin
There is still a long way to go to use the Schnorr Signatures for Bitcoin. This must be approved in the bitcoin forums and eventually run on the entire blockchain.
It seems that Schnorr signatures will run as a soft fork on the blockchain so that the entire network is not reset. software upgrade will be performed in this case.
Finally, the cryptocurrency market is undergoing major changes every day to see what vital developments will take place in the digital currency industry in the second decade of this decentralized financial system. Can Schnorr signatures provide a way to increase the security and speed of bitcoin transactions and increase the demand for these types of cryptocurrencies? what is your opinion?