• Cardano’s Founder Claims Bitcoin Didn’t Go Far Enough

  • Cardano founder Charles Hoskinson recently tweeted that Bitcoin’s UTXO concept had not gone too far because to its restricted programmability. The Extended UTXO (EUTXO) accounting model, he believes, is the “natural next step.”

    Ethereum, which is now the dominant force in the decentralized finance (DeFi) area, has an account-based approach in which assets are represented as balances. As a result, consumers can only use a portion of their accounts rather than the entire amount. Because he was upset with Bitcoin’s constraints, Ethereum co-founder Vitalik Buterin opted for the account-based architecture rather than the UTXO.

    Twitter user Sooraj claims that the EUTXO architecture is superior to Ethereum’s account-based paradigm in a viral thread reposted by Hoskinson. Because two or more parties can control the same data, the latter has a “far larger” surface area for assault. The EUTXO model is highly parallel and scalable.

    According to Hoskinson, this is what Ethereum developers are “fundamentally missing.” According to the Cardano founder, Satoshi Nakamoto, the pseudonymous creator of Bitcoin, rejected the account-based concept due to its flaws.

    According to Input Output, the goal of EUTXO was to integrate the best of both worlds. The Cardano developer now wishes to capitalize on 13 years of experience and testing with EUTXO.

    Cardano’s accounting methodology drew a lot of attention in September due to the “concurrency” issue that arose following the disastrous debut of the Minswap decentralized exchange. Input Output raced to explain that Cardano-based dApps were not limited to a single transaction per block, but that the EUTXO allows a transaction output to be spent just once.

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