This article is a direct follow-up from our Taproot explainer. If you haven’t read that article, you should probably do so first.
If Taproot is deployed on Bitcoin, many smart contract constructions will look just like regular transactions on the blockchain. As long as all participants agree on the outcome of the contract — a “cooperative close” — the clever combination of Schnorr and MAST offers both data efficiency and privacy.
However, if a Taproot smart contract is complex enough — that is, if there are many potential outcomes — the Merkle path that needs to be revealed in case of an uncooperative close would still be data heavy.