Cardano founder Charles Hoskinson stated in a recent tweet that Bitcoin did not go too far with the UTXO model due to its limited programmability. He stated that he sees the Extended UTXO (EUTXO) accounting model as the next logical step.
As a leader in decentralized finance (DeFi), Ethereum uses the account-based model to represent assets as balances . Thus, users can use their accounts partially instead of spending their entire account. Vitalik Buterin, co-founder of Ethereum, got fed up with Bitcoin’s limitations so he opened the account-based model instead of UTXO.
In a thread quoted by Hoskinson, Twitter user Sooraj said that the EUTXO architecture is superior to Ethereum’s account-based model.
Cardano founder Hoskinson suggested that Satoshi Nakamoto switched to the account-based model due to Bitcoin’s shortcomings.
Claiming that the aim is to combine the best of both worlds with EUTXO, Hoskinson now wants to benefit from 13 years of knowledge and testing with EUTXO.
4689
