Cardano founder Charles Hoskinson underlines the best feature of the EUXTO model: greater functional programming skills.
Cardano is an Unspent Transaction Output (UTXO)-based blockchain, similar to Bitcoin, that uses a different accounting mechanism for its ledger than account-based blockchains like Ethereum. ADA, on the other hand, employs a cutting-edge Extended Unspent Transaction Output (EUTXO) paradigm that was introduced with the Alonzo upgrade to accommodate multi-assets and smart contracts.
This comes after Justin Bonus, the founder and CIO of CyberCapital, criticized Cardano for making substantial trade-offs by depending on a UTXO mechanism rather than an account model.
Limited interoperability across smart contracts was noted by the CyberCapital CIO as one of EUXTO’s “basic weaknesses.” While this may limit the types of contracts that may be developed on Cardano, he claims that “the trade-off for the loss of concurrency is parallelism, which provides scalability benefits.”
Because EUTXO extends the UTXO concept by allowing output addresses to include complicated logic to determine which transactions can unlock them, this is the case. Due to the “local” nature of transaction validation, a large amount of parallelism can be achieved by adding custom data to all outputs.
The EUTXO paradigm appears to offer greater benefits, including improved security and predictability in smart contract execution costs, as well as more powerful parallelization.
Cardano surpasses Terra to become the 8th largest
Cardano has surpassed Terra (LUNA) to become the eighth largest cryptocurrency by market capitalization, according to CoinCu data. Cardano currently has a market value of $25.27 billion, putting it ahead of Terra, which has a market capitalization of $21.85 billion.
Cardano had an unexpected comeback on May 4 before the recent price decline. On-chain data shows a whale shopping binge and a surge in retail demand.
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