Signatures are one of the most vital things that make the blockchain of Bitcoin (BTC). In an indirect way, they provide a solution to the issue of double spending on the blockchain. They are also responsible for the verification of transactions on the blockchain.
Whenever a user creates a hash for his/her transaction data, the hash generated for that transaction can be signed with their private key. The signature can be verified using anybody that knows the public key of the transacting parties.
The Present Signature System
Nevertheless, the present signature system, which is known as ECDSA (Elliptical Curve Digital Signature Algorithm) is said to be inefficient when compared to a superior method of signing – Schnorr signatures.
What Is a Schnorr Signature?
Just as the name implies, a Schnorr signature is a sign that is generated by a Schnorr signature algorithm. The security of this signature depends on the intractability of distinct algorithms. For it to be used on the network of Bitcoin, a Bitcoin Improvement Protocol (BIP) has been submitted.
Schnorr signature’s security is provable in the Random Oracle model, whereas that of ECDSA doesn’t have similar proof. In addition, Schnorr signatures are said to minimize the use of bandwidth and storage by 25 percent, and they can execute Multi-signature as well.
Using a program like MuSig, it’s possible to generate joint public keys signed for different participants. This enhances efficiency and privacy. Utilization of the standardized Schnorr signature will as well lead to spam attacks as seen on the blockchain of Bitcoin during the debate of the blocksize.
Since the same address receives coins from multiple addresses in that kind of attack, the Schnorr signature works in a way that several addresses sending tokens to the address are divided into groups with a single signature. In all, the best way forward for the blockchain of Bitcoin (BTC) seems to be the Schnorr signature standard.