Glossary

Schnorr Signatures

A cryptographic signature scheme that enhances Bitcoin's privacy, efficiency, and smart contract capability.

What is Schnorr Signatures?

A cryptographic signature scheme that enhances Bitcoin's privacy, efficiency, and smart contract capability. Powered by Schnorr signatures, Lygos Finance's DLCs provide a compact on-chain footprint for $25K–$100M non-custodial loan structures.

Full Definition

Introduced via the Taproot upgrade, Schnorr signatures allow multiple signatures in a complex transaction to be aggregated into a single, standard-looking signature. This reduces the data size of transactions, lowers network fees, and makes sophisticated multisig or DLC contracts look identical to basic transfers on the public ledger.

How Lygos Uses This

Powered by Schnorr signatures, Lygos Finance's DLCs provide a compact on-chain footprint for $25K–$100M non-custodial loan structures.

Why this matters for borrowers

Understanding Schnorr Signatures is essential for evaluating non-custodial lending. This technology is what makes it possible to borrow against Bitcoin without surrendering your keys to a third party.

Related Terms

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