cardano Founder Charles Hoskinson said on Twitter: of bitcoin He said he couldn’t get very far on the UTXO model due to its limited programmability.
Hoskinson stated that he thinks the next logical step is the Extended UTXO (EUTXO) model.
Currently the leading name in the world of decentralized finance (DeFi) on Ethereum An account-based model is used. In this model, crypto assets are represented as balances. Therefore, users can use their accounts partially instead of spending them completely. Ethereum co-founder Vitalik Buterin had adopted the account-based model rather than UTXO due to the restrictions that Bitcoin has.
“EUTXO Model is Superior to the Model Used by Ethereum”
In a thread Retweeted by Hoskinson, a Twitter user stated that the EUTXO architecture is superior to Ethereum’s account-based model. According to the user, the account-based model provides more vulnerabilities for attacks as it allows two or more people to control the same data. The EUTXO model, on the other hand, is thought to offer a higher level of parallelism and scalability.
“Satoshi Nakamoto Didn’t Adopt Ethereum’s Account-Based Model Because He Sees Its Shortcomings”
This is what Ethereum developers basically missed, according to Hoskinson. Cardano founder, in his statement, said that Bitcoin founder Satoshi Nakamoto did not use the account-based model because he saw the shortcomings of this model.
Input Output, the company behind ADA, stated that EUTXO is the viable option to get the best of both models.
*Not investment advice.