Cardano uses an innovative Extended Unspent Transaction Output (EUTXO) model Founder of Cardan Charles Hoskinsonin a recent tweet, highlights the best part of Cardano’s EUXTO model: superior knowledge of functional programming.
Cardano, similarly to Bitcoin, is an Unspent Transaction Output (UTXO)-based blockchain, which uses a different accounting model for its ledger from other account-based blockchains, such as Ethereum. Cardano, on the other hand, uses an innovative Extended Unspent Transaction Output (EUTXO) model, which was introduced by the Alonzo upgrade to support multi-assets and smart contracts.
This comes amid critical remarks from the founder and CIO of CyberCapital, Justin Bonus, who cited that Cardano made major compromises by relying on a UTXO model instead of an account model.
The CyberCapital CIO had cited limited interoperability between smart contracts as part of the “fundamental flaws” of EUXTO architecture. He says that while this may restrict the types of contracts that can be built on Cardano, “The trade-off for the loss in concurrency is parallelism which gives scalability advantages.”
This is because EUTXO extends the UTXO model by allowing exit addresses to incorporate complex logic to determine which transactions can unlock them. And by adding custom data to all outputs, a significant degree of parallelism is possible due to the “local” nature of transaction commit.
The EUTXO paradigm appears to have more advantages, such as increased security and predictability in smart contract execution costs, and more powerful parallelization.
Cardano bumps Terra to 8th place
According to data from CoinMarketCap, Cardano overthrew Terra (LUNA) to rank 8th by market capitalization. With a current market valuation of $25.27 billion, Cardano now ranks ahead of Terra, which has a current market cap of $21.85 billion.
As U.Today previously reported, Cardano pulled in a surprise recovery on May 4 before the latest price retreat. On-chain data indicates an accumulation spree among whales and a spike in retail interest.
IntoTheBlock recently reported that balances held by merchants, which refer to addresses held for less than 30 days, have jumped around 186% in the past 30 days or so. These addresses now hold 36.14% of the total ADA supply.
Cardano (ADA) trades down 4.60% at $0.746 at the time of publication.
