The Internet Computer continues to improve cross-chain interoperability, with the Deuterium milestone enabling containers to create threshold Schnorr signatures, including the Schnorr standardized in BIP340 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 adjustments in threshold Schnorr signatures extend the cross-chain functionality of container smart contracts, making it easier to integrate with the Bitcoin meta-protocol.