Cardano founder Charles Hoskinson praised the EUTXO model of Blockchain, claiming that it is superior to the account-based model of Ethereum. Hoskinson’s criticism focuses on the two cryptocurrencies due to their fundamental shortcomings.
Cardano founder says Bitcoin is not enough
In a recent tweet, Cardano founder Charles Hoskinson stated that Bitcoin (BTC) did not go too far with the UTXO model due to its limited programmability. Hoskinson sees the extended UTXO (EUTXO) accounting model as “the next logical step.” Ethereum (ETH), currently the heart of the DeFi market, uses the account-based model that represents assets as balances. Thus, users can partially use their accounts instead of spending their entirety.
In a viral thread retweeted by Hoskinson, Twitter user Sooraj, EUTXO argues that its architecture is superior to Ethereum’s account-based model. Second, since two or more parties can control the same data, it has a “much larger” surface area for attack. The EUTXO model offers a high degree of parallelism and scalability.
This is what Ethereum developers are “basically missing” according to Charles Hoskinson
Cardano founder says Bitcoin’s pseudonymous creator Satoshi Nakamoto has passed the account-based model due to its shortcomings. The company IOHK claims the aim is to combine the best of both worlds with EUTXO. The Cardano developer now wants to leverage 13 years of know-how and testing with EUTXO.
Cardano’s accounting model, Minswap received a lot of criticism in September for the “concurrency” issue that followed the DEX platform’s failed debut. IOHK has worked to clarify the errors. He said Cardano-based dApps are not limited to a single transaction per block, but EUTXO makes it possible to spend a transaction output only once.
At the time of writing, Cardano (ADA) is trading just over $1, down 11% since last week. It is down more than 60% from its local high of $1.6 after rising more than 80% from the week beginning Jan. Reaching $3.10 in September, ADA is trading at a 66.39% discount from this ATH price.
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