In a twitter post on May 7, Cardano founder Charles Hoskinson outlines the prime feature of the EUTXO model: superior knowledge of functional programming.
Just like Bitcoin, Cardano is also an Unspent Transaction Output (UTXO)-based blockchain with a unique accounting mechanism compared to other account-based blockchains like Ether. Cardano employs a novel Extended Unspent Transaction Output (EUTXO) architecture launched with the Alonzo upgrade to accommodate multi- resource and smart contracts.
This comes in the midst of basic comments made by the organiser and chief investment officer of CyberCapital, Justin Bonus, who referred to the fact that Cardano has made significant trade-offs by depending on an UTXO model rather than an account model.
The CyberCapital CIO identified low compatibility between smart contracts as one of the EUXTO architecture’s “fundamental flaws.” While this may limit the types of contracts that can be developed on Cardano, he claims that “The trade-off for the loss in concurrency is parallelism, which gives scalability advantages.”
This is due to the fact that Extended Unspent Transaction Output increases the Unspent Transaction Output concept by permitting output addresses to include tangled logic that determines which transactions can release them.
The EUTXO paradigm seems to enjoy more benefits, for example, expanded security and consistency in smart contract execution expenses, and all the more remarkable parallelization.
Read more:
Cardano network witnesses 186% growth in retail traders
