How does UTXO differ from account-based models in blockchain technology?

3 answers

• Dec 25, 2021 · 3 years ago
  In UTXO (Unspent Transaction Output) model, each transaction creates new UTXOs that can be spent in future transactions. These UTXOs represent the ownership of digital assets. On the other hand, account-based models maintain account balances and allow users to transfer funds between accounts. The main difference lies in the way transactions are structured and how ownership is represented. UTXO model provides better privacy and scalability, as each transaction can be verified independently without revealing the entire account balance. Account-based models, on the other hand, are simpler to implement and offer more flexibility in terms of smart contract functionality.
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• Dec 25, 2021 · 3 years ago
  UTXO and account-based models are two different approaches to handling transactions in blockchain technology. UTXO model is used by cryptocurrencies like Bitcoin, where each transaction creates new UTXOs that can be spent in future transactions. Account-based models, on the other hand, maintain account balances and allow users to transfer funds between accounts directly. The choice between UTXO and account-based models depends on the specific requirements of the blockchain application, such as privacy, scalability, and smart contract functionality.
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• Dec 25, 2021 · 3 years ago
  UTXO, which stands for Unspent Transaction Output, is a model used in cryptocurrencies like Bitcoin. In UTXO model, each transaction creates new UTXOs that can be spent in future transactions. This model provides better privacy and scalability compared to account-based models, as each transaction can be verified independently without revealing the entire account balance. Account-based models, on the other hand, maintain account balances and allow users to transfer funds between accounts directly. Both models have their own advantages and disadvantages, and the choice depends on the specific needs of the blockchain application.
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