The Internet Computer continues to improve cross-chain interoperability, with the Deuterium milestone enabling containers to create threshold Schnorr signatures, including the BIP340 standardized Schnorr used in Bitcoin, allowing containers to generate Pay-To-Taproot (P2TR) addresses and initiate Taproot transactions.
In this blog post, we will explain the development of P2TR support on the Internet Computer, the initial limitations faced by containers, and how the recently added key adjustment in threshold Schnorr signatures expands the cross-chain capabilities of container smart contracts, making it easier to integrate with the Bitcoin meta-protocol.