.IOHK_Charles believes that Cardano’s EUTXO model is the “next logical step”
opined that Bitcoin hadn’t gone too far with its UTXO model due to its limited programmability. He sees the Extended UTXO accounting model as “the logical next step.”
Ethereum, which is currently the leading force in the decentralized finance space, uses the account-based model, which represents assets as balances. Hence, users are able to partially use their accounts instead of spending the whole thing. Vitalik Buterin, the co-founder of Ethereum, opened for the account-based model instead of the UTXO because he became frustrated with Bitcoin’s limitations.
In a viral thread retweeted by Hoskinson, Twitter user Sooraj argues that the EUTXO architecture is superior to Ethereum’s account-based model. The latter has a “much bigger” surface area for attack since two or more parties are capable of controlling the same data. The EUTXO model offers a high degree of parallelism and scalability.This is what, according to Hoskinson, Ethereum developers are “fundamentally missing.
Input Output claims that the purpose was to combine the best of both worlds with EUTXO. Now, the Cardano developer wants to capitalize on 13 years of knowledge and testing with EUTXO.