A Taproot address is a new type of Bitcoin address that improves the privacy, security, and efficiency of Bitcoin transactions. This address is a specific type of output script in a Bitcoin transaction that allows for more complex spending conditions to be defined.
It uses a new scripting language called Tapscript, which is an extension of the existing Bitcoin scripting language. A Taproot output consists of a 32-byte public key, a 1-byte version field, and a control block that defines the spending conditions. The control block is a complex script that can include multiple spending conditions, such as time locks or multi-signature requirements.
When a transaction is made to a Taproot address, the output script is recorded on the blockchain as a hash of the public key and the control block. The actual script is not revealed until the funds are spent, at which point the script is validated against the transaction data and the spending conditions are checked.
If the spending conditions are met, the funds can be spent using a single signature, making Taproot transactions more efficient than traditional transactions that require multiple signatures. Overall, Taproot addresses provide a more efficient and flexible way to define spending conditions in Bitcoin transactions, while also improving privacy by hiding the spending conditions until they are needed.