Schnorr Signatures vs ECDSA in Bitcoin: What Changed After Taproot

Schnorr Signatures vs ECDSA in Bitcoin: What Changed After Taproot
Selene Marwood / Jan, 12 2026 / Blockchain Development

Before Taproot, every Bitcoin transaction looked the same: one signature, one public key, one line of code proving ownership. But behind that simplicity was a decades-old cryptographic system-ECDSA-that was never designed for the scale Bitcoin would reach. Then, in November 2021, Taproot activated. And with it came Schnorr signatures, quietly replacing ECDSA as the new standard for single-signature transactions. It wasn’t a flashy upgrade. No new coins. No price surge. Just cleaner math, smaller data, and better privacy. If you’ve ever wondered why Bitcoin’s transaction fees dropped slightly after Taproot, or why multisig wallets now look like regular ones, the answer starts with Schnorr.

Why ECDSA Was the Only Choice for Years

When Bitcoin launched in 2009, it used ECDSA because it was proven, available, and-most importantly-unpatented. The real story? Schnorr signatures were invented in 1989 by Claus-Peter Schnorr, but they were locked behind patents that didn’t expire until the mid-2010s. Bitcoin’s creator, Satoshi Nakamoto, couldn’t legally use them without risking lawsuits. So ECDSA became the fallback. It worked. It was secure. But it was clunky.

ECDSA signatures in Bitcoin are 70 to 72 bytes long. Public keys? 33 bytes. That’s not a lot, but multiply that by thousands of transactions per block, and you start wasting space. Worse, ECDSA signatures aren’t uniform. Their size can vary slightly depending on how the numbers are encoded. That makes batching-verifying many signatures at once-slow and messy. And because ECDSA uses a non-linear equation, the math is harder to verify efficiently, especially when multiple parties need to sign one transaction.

What Makes Schnorr Signatures Different

Schnorr signatures are built on a linear equation. That’s it. No tricks. No weird edge cases. Just a clean, mathematical structure that’s easier to verify and harder to mess up in code. The signature itself? Always 64 bytes. Public keys? Always 32 bytes. That’s a 6-9 byte savings per signature. Sounds small? On a blockchain processing millions of transactions, that adds up to gigabytes of saved storage over time.

But the real win isn’t size-it’s what you can do with multiple signatures. With ECDSA, a 2-of-3 multisig transaction looks like a mess on the blockchain: three public keys, three signatures, and a long script that screams, “This isn’t a normal transaction.” It’s easy for block explorers to spot, track, and analyze. That’s bad for privacy. It also costs more in fees because it takes up more space.

Schnorr changes that. Through MuSig, multiple public keys can be combined into one single aggregated key. Multiple signatures can be combined into one single signature. To the blockchain, it looks like a regular, single-signature transaction. One public key. One signature. No clues about how many people were involved. That’s not just privacy-it’s fungibility. Your Bitcoin can’t be flagged as “this came from a multisig wallet,” because no one can tell the difference.

Security: Simpler Math, Stronger Guarantees

Both ECDSA and Schnorr rely on the same foundation: the difficulty of solving the discrete logarithm problem on elliptic curves. So, in raw security terms, they’re equally strong. But security isn’t just about math-it’s about how hard it is to implement correctly.

ECDSA has a known flaw: if you reuse the same nonce (a random number used once in signing), your private key leaks. That’s happened before. In 2010, Sony’s PlayStation 3 was hacked because they reused nonces in ECDSA. Bitcoin avoided this by using deterministic nonces, but the risk was still there.

Schnorr signatures are more forgiving. They don’t have the same vulnerability to nonce reuse in the same way. Even better, they’re inherently non-malleable. With ECDSA, someone could tweak a signature slightly and make it still valid-just for a different message. That opened the door to transaction malleability attacks, which broke some early Bitcoin services. Schnorr fixes that. A valid Schnorr signature can’t be changed without breaking it completely.

And because the math is simpler, there are fewer places for bugs to hide. Developers who’ve implemented both say Schnorr verification code is easier to audit, test, and debug. Fewer edge cases. Fewer surprises.

A peaceful vault with tangled ECDSA signatures on one side and a unified Schnorr signature merging with hidden keys on the other, lit by floating lanterns.

Performance: Faster, Smaller, Batchable

Speed matters in a blockchain. Every second saved in verification means more transactions can be processed. Schnorr signatures are about 15% faster to verify than ECDSA. Not huge on a single transaction, but when you’re verifying 2,000 transactions in a block, that’s 300 fewer milliseconds of processing time. That’s not just efficiency-it’s network resilience.

The real game-changer is batch verification. With ECDSA, you have to verify each signature one by one. With Schnorr, you can verify multiple signatures together in one step. Think of it like checking a stack of receipts at once instead of one at a time. This isn’t just theoretical. Bitcoin Core’s implementation already uses batch verification for Schnorr, and it cuts verification time by up to 70% when handling many signatures at once.

Memory use is lower too. Smaller signatures mean less RAM needed by nodes. That helps lightweight wallets and even mobile devices sync faster. It’s not a headline, but it’s why your Bitcoin wallet loads quicker now than it did in 2020.

Privacy: The Hidden Benefit

This is where Schnorr really shines-and why it’s the quiet hero of Taproot. Before Taproot, if you used a multisig wallet (say, a corporate treasury or a family vault), your transactions were easy to identify. Block explorers could tell you it was a 3-of-5 multisig. You could even track which wallets were involved over time. That’s terrible for privacy.

With Schnorr, all of that disappears. A 3-of-5 multisig transaction looks exactly like a transaction signed by one person. No script. No flags. No metadata. To an observer, it’s indistinguishable from a personal wallet. That’s a massive leap for Bitcoin’s fungibility. If your coins were once part of a multisig, you don’t have to worry about them being “tainted” or flagged by exchanges or analytics firms.

Even the Lightning Network benefits. More compact signatures mean cheaper channel openings and closes. More privacy means fewer transaction patterns can be analyzed to track user behavior. It’s not magic-but it’s the closest thing Bitcoin has gotten to true privacy without adding anonymity layers like CoinJoin.

A child placing a single Schnorr rune on a blockchain scroll, transforming multisig wallets into identical houses beneath a shimmering data aurora.

Adoption: What’s Changed Since Taproot

Taproot didn’t force anyone to use Schnorr. It just made it possible. Today, over 60% of new Bitcoin transactions use Schnorr signatures. Wallets like BlueWallet, Sparrow, and Ledger now support them by default. Exchanges like Coinbase and Kraken have started using Schnorr for internal transfers. Even Bitcoin ATMs are slowly rolling out support.

ECDSA isn’t gone. Old transactions still use it. Legacy wallets still rely on it. But every new wallet you create today, every new multisig setup, every Lightning channel opened-chances are, it’s using Schnorr. The transition isn’t overnight. It’s gradual. But it’s steady. And it’s irreversible.

What’s Next? Aggregation, Thresholds, and Beyond

Schnorr isn’t done evolving. Researchers are already testing signature aggregation across multiple transactions-meaning you could combine signatures from dozens of unrelated payments into one single proof. That could shrink the blockchain’s size even further.

Threshold signatures (k-of-n) are also improving. Imagine a company where any 3 out of 5 executives can sign a payment, but no two can. With Schnorr, that’s now possible without revealing who signed. Enterprise custody solutions are starting to use this. It’s not mainstream yet-but it’s coming.

And as other blockchains look to improve their own signature systems, many are copying Bitcoin’s lead. Ethereum’s upcoming upgrades, Solana’s newer key schemes, even privacy coins are borrowing from Schnorr’s design. Bitcoin didn’t just upgrade itself-it set the standard.

Why This Matters to You

If you’re holding Bitcoin, you’re already benefiting from Schnorr. Lower fees. Faster confirmations. Better privacy. No action needed. Your wallet doesn’t ask you. It just works better.

If you’re using multisig-whether for a business, a family, or a DAO-you’re getting stronger security with less complexity. No more bloated scripts. No more leaked metadata. Just clean, simple, private transactions.

And if you’re building on Bitcoin? Schnorr makes it easier to build scalable, private, efficient applications. From smart contracts to tokenized assets, the foundation is now stronger than ever.

Schnorr signatures didn’t change Bitcoin’s rules. They just made it smarter. Cleaner. More private. And more scalable. It’s not the flashiest upgrade. But it’s the one that will last.

Are Schnorr signatures more secure than ECDSA?

Yes, in practical terms. Both use the same underlying math (elliptic curve cryptography), so their theoretical security is equal. But Schnorr signatures are non-malleable by design, have simpler security proofs, and are less prone to implementation errors. ECDSA has known vulnerabilities like nonce reuse and signature malleability that require extra workarounds. Schnorr fixes these at the protocol level.

Do I need to do anything to use Schnorr signatures?

No, if you’re using a modern wallet. Since Taproot activated in 2021, most wallets (like BlueWallet, Sparrow, Ledger, and Trezor) automatically generate Schnorr-based addresses for new transactions. Your old ECDSA addresses still work, but any new funds you send to a new address will likely use Schnorr. No action needed on your part.

Can I convert my old ECDSA addresses to Schnorr?

Not directly. Your old ECDSA address stays ECDSA forever. But you can move your Bitcoin to a new Taproot address (which uses Schnorr) by sending it to a new wallet address generated after Taproot. Most modern wallets do this automatically when you create a new receive address. Just send your coins to a fresh address labeled “Taproot” or “Bech32m”.

Why did Bitcoin wait until 2021 to adopt Schnorr?

Schnorr signatures were patented from the 1980s until the mid-2010s. Bitcoin couldn’t legally use them without risking lawsuits. Once the patents expired, developers spent years designing BIP 340, testing security, and coordinating consensus. Taproot was the first opportunity to deploy it safely without breaking the network. The delay wasn’t technical-it was legal.

Do Schnorr signatures make Bitcoin transactions cheaper?

Yes, especially for multisig. A single Schnorr signature is 64 bytes-6-9 bytes smaller than ECDSA. For multisig, the savings are massive: a 3-of-5 Schnorr multisig uses the same space as a single-signature transaction, while ECDSA multisig can be 3-5x larger. That means lower fees and better scalability. On average, Taproot transactions cost 10-25% less than legacy ones.

14 Comments

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    Valencia Adell

    January 12, 2026 AT 19:50

    Schnorr is just crypto bros pretending they’re mathematicians. The real win? Lower fees. Everything else is noise. You’re still trusting the same centralized exchanges anyway.

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    Sarbjit Nahl

    January 13, 2026 AT 20:08

    The adoption of Schnorr signatures represents a paradigmatic shift in cryptographic orthodoxy within decentralized systems. One must consider the epistemological foundations of consensus and the ontological implications of signature aggregation. ECDSA was a necessary artifact of its time, but Schnorr embodies a more elegant ontological structure.

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    Paul Johnson

    January 14, 2026 AT 21:56

    bro why do we even care about signatures like its some kind of magic trick its just math and if you dont know how to use a wallet you prob shouldnt have bitcoin anyway lol

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    Meenakshi Singh

    January 14, 2026 AT 22:13

    THEY DID IT!!! 🎉 Schnorr is the quiet revolution we didn’t know we needed. Privacy? Fungibility? YES PLEASE. 🙌 Bitcoin just got a whole lot sexier without even trying. #TaprootWin

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    Kelley Ramsey

    January 16, 2026 AT 16:03

    This is so exciting! I never realized how much of a difference smaller signatures could make-until I checked my wallet fees and noticed they dropped! And the privacy aspect? It’s like Bitcoin finally grew up. Thank you, developers, for doing the hard work quietly. 💛

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    Jacob Clark

    January 17, 2026 AT 11:15

    Everyone’s acting like Schnorr is some kind of miracle, but let’s be real-Bitcoin’s still just digital gold. The real problem? Centralized exchanges, not signatures. And don’t get me started on how people still think ‘privacy’ means hiding from the IRS…

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    Jon Martín

    January 18, 2026 AT 13:53

    Y’all are sleeping on how huge this is. Schnorr isn’t just tech-it’s freedom. Imagine a world where your family wallet looks like your personal one. No one can track who’s rich, who’s saving, who’s building. That’s not innovation. That’s justice. 🚀

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    Mujibur Rahman

    January 18, 2026 AT 21:59

    Batch verification with Schnorr reduces block validation latency by up to 70% in Core’s implementation. The reduction in RAM overhead enables lightweight nodes on ARM devices-critical for global adoption in emerging economies. This is infrastructure-level progress, not just a UX tweak.

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    Danyelle Ostrye

    January 20, 2026 AT 09:38

    I read this whole thing and still don’t know if I should care. But I guess if my fees went down, I’m not complaining.

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    Jennah Grant

    January 21, 2026 AT 08:37

    What’s fascinating is how Schnorr enables future protocol upgrades without hard forks. The aggregation properties make it a foundational layer for Layer 2s like Lightning and even future smart contract frameworks. This isn’t an upgrade-it’s an enabler.

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    Dennis Mbuthia

    January 21, 2026 AT 13:16

    Look, I love Bitcoin but why are we letting some nerds in Silicon Valley decide what’s ‘better’? ECDSA worked fine for 12 years. Now we got all this fancy math and suddenly my wallet’s ‘more private’? Newsflash: the government still sees every transaction. This is just crypto-washing.

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    Dave Lite

    January 22, 2026 AT 22:49

    Biggest win for me? No more nonce reuse panic. I used to stress about signing on mobile. Now I can do it in a coffee shop without sweating. And the multisig privacy? Game changer for DAOs. I’ve seen teams finally feel safe using Bitcoin for real governance. 🙏

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    Becky Chenier

    January 23, 2026 AT 23:44

    Interesting read. I’m still trying to understand why the patents mattered so much. Wasn’t Bitcoin built on open-source principles? Seems odd that legal restrictions held back such a fundamental improvement for so long.

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    Staci Armezzani

    January 24, 2026 AT 06:30

    If you’re still using legacy addresses, just move your funds to a new Taproot address. It’s one transaction. No drama. No panic. Your wallet will do the rest. You’re not losing anything-you’re gaining privacy, lower fees, and future-proofing. Just do it. You’ve got this.

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