What Is the Difference between a 'UTXO' and an 'Account' Model in Blockchains? ⎊ Path

What Is the Difference between a ‘UTXO’ and an ‘Account’ Model in Blockchains?

The UTXO (Unspent Transaction Output) model, used by Bitcoin, tracks money as a collection of unspent outputs from previous transactions, similar to physical cash. The Account model, used by Ethereum, tracks balances in a global state, similar to a bank account.

UTXO is generally more private and scalable for simple payments; Account is better for complex smart contracts.

What Is the Role of UTXOs (Unspent Transaction Outputs) in the SegWit Transaction Model?

How Does the Number of Inputs and Outputs Affect the Size of a Transaction?

What Is a ‘UTXO’ and How Does It Relate to Transaction Validity?

How Does the Account Model (Like Ethereum) Differ from the UTXO Model?

In the Context of a Cryptocurrency Transaction, What Is the Role of an Unspent Transaction Output (UTXO)?

What Is a Common Example of a Cryptocurrency Using the UTXO Model That Benefits from SPV?

What Is a UTXO and How Does It Relate to Signing a Transaction?

How Does the UTXO Model Differ Fundamentally from the Account/Balance Model Used by Ethereum?

Glossar

UTXO

Model ⎊ UTXO, or Unspent Transaction Output, represents the accounting model used by Bitcoin and other similar blockchains.

Utxo Model

Architecture ⎊ The Unspent Transaction Output (UTXO) model represents a distinct approach to tracking cryptocurrency ownership, differing fundamentally from account-based systems.