While layer 2 solutions are emerging and receiving increasing attention in the blockchain community, it is equally important to focus on base-layer solutions, which have the potential to significantly expand the operational capacity of the network. One of the most promising innovations in layer 1 are Schnorr signatures. In the next few lines, we will elaborate on their functions and advantages.
Schnorr is a digital signature algorithm that can be used to sign transactions on a blockchain. It is named after its inventor, Claus-Peter Schnorr, who developed the algorithm in 1991. Schnorr signatures are considered to be more secure and efficient than the digital signatures currently used in the Bitcoin protocol, called ECDSA (Elliptic Curve Digital Signature Algorithm). Schnorr signatures allow for more compact representation of signatures, which can lead to increased transaction throughput and reduced fees on the network. There have been proposals to introduce Schnorr signatures into the Bitcoin protocol, but they have not yet been implemented.