UTXO Model vs Account Model
Also known as: UTXO vs Account, UTXO Account Comparison
Comparison between UTXO-based and account-based approaches to on-chain balance tracking.
The UTXO model (used by Bitcoin) and the Account model (used by Ethereum) are two different paradigms for tracking balances on blockchains. UTXO treats funds as discrete outputs that are consumed as inputs in new transactions, enabling better parallelization and privacy. The Account model keeps a global state of account balances and nonces, simplifying smart contract interactions. Some platforms combine models (like Cardano’s EUTXO) to balance scalability, programmability, and privacy.