Schnorr signatures
Schnorr signatures are a digital signature scheme added to Bitcoin via the Taproot upgrade (2021), making multisig transactions more compact, efficient and private.
Schnorr signatures replace the older ECDSA for Taproot spends. Key advantages: they're linear (signatures can be mathematically summed), making an n-of-n multisig look like a single regular signature. This saves fees, improves privacy (multisig indistinguishable from single-sig) and enables protocols like MuSig2 and FROST. Requires a Taproot output (bech32m address).
Example
A company uses 3-of-5 multisig for treasury. Pre-Schnorr: on-chain visible as multisig, high fees. With MuSig2 on Schnorr: single on-chain signature, looks like a regular transaction, ~60% fee savings, better privacy.
Frequently asked questions
Do I need to change anything to use Schnorr?
Use a Taproot address (starts with bc1p). Most modern wallets (Sparrow, Bitcoin Core, Muun) support it. Receiving via Taproot activates Schnorr when you spend.
Is ECDSA unsafe now?
No. ECDSA still works fine and is still widely used. Schnorr is better, not urgent. Migration happens naturally as wallets/exchanges embrace Taproot.
Related terms
Further reading
- → Our service: Bitcoin & Fintech