Bitcoin Taproot address now supported on Kraken
We’re thrilled to announce that Kraken now supports withdrawals to Taproot (Bech32m) Bitcoin addresses!
Taproot is an upgrade to the Bitcoin protocol that aims to improve the privacy and efficiency of the world’s first and largest cryptocurrency.
Taproot included three proposals — Schnorr, Taproot, and Tapscript — which delivered key aggregation, Merklized Alternative Script Trees (MAST), and an improved version of Bitcoin’s Script programming language respectively.
The privacy and efficiency benefits delivered by Taproot are ultimately two sides of the same coin. By committing less transaction information to the blockchain, less transaction data is available for anyone checking Bitcoin’s publicly available ledger. Committing less data also creates space in each block for more transactions, which should reduce fees and increase transaction throughput. Taproot also enables the development of smart contracts on the Bitcoin network, opening up new possibilities for decentralized applications (dApps).
Want to learn even more about Bitcoin’s Taproot upgrade? You can check out the Kraken Learn Center’s beginners guide What is Taproot? or Kraken Intelligence’s technical deep dive Taproot Primer – An Upgrade for the Ages.
Did you know you could also deposit Bitcoin on Kraken using the Lightning network?
While regular BTC transactions are limited by block times and can face high transaction fees, Lightning Network enables instant settlement and zero fees when you transfer BTC to or from your Kraken account. Additionally, we have lowered the BTC deposit confirmations from 4 to 3!
How do I deposit BTC on Lightning?
- Navigate to Funding > Deposit and select Bitcoin (BTC)
- Select Lightning Network
- Enter the amount of satoshis* you want to deposit
- Hit Generate deposit request
- Copy and paste the generated invoice into your Lightning wallet, or scan the QR code
- Send the payment
- Enjoy lightning-fast deposit times and zero fees!
Check out our Lightning Network announcement post to learn more: Kraken Now Supports Instant Lightning Network BTC Transactions.
These materials are for general information purposes only and are not investment advice or a recommendation or solicitation to buy, sell or hold any cryptoasset or to engage in any specific trading strategy. Some crypto products and markets are unregulated, and you may not be protected by government compensation and/or regulatory protection schemes. The unpredictable nature of the cryptoasset markets can lead to loss of funds. Tax may be payable on any return and/or on any increase in the value of your cryptoassets and you should seek independent advice on your taxation position.