Assets, Ethereum

Does Ethereum Use UTXO?

Yes, Ethereum does use UTXO. The UTXO model is a core part of Bitcoin and Ethereum, and is also used by other cryptocurrencies.

In the UTXO model, each transaction has one or more inputs and outputs. Inputs are spent UTXOs, and outputs are new UTXOs that are created by the transaction.

The UTXO model has several advantages over other models. First, it is simple and easy to understand.

NOTE: WARNING: Ethereum does not use UTXO (Unspent Transaction Output) as a transaction model. Although UTXO is used by many other cryptocurrencies such as Bitcoin, Ethereum uses a different transaction model called ‘Account/Balance’ which is based on the idea of accounts, balances, and smart contracts. Therefore, attempting to use UTXO in Ethereum transactions will result in errors or unanticipated results.

Second, it is very efficient in terms of storage and bandwidth requirements. Third, it makes it possible to verify transactions without having to download the entire blockchain.

Fourth, the UTXO model is very flexible. For example, it is possible to create a multisig wallet where multiple parties must sign each transaction.

Fifth, UTXOs can be “locked” so that they can only be spent in specific conditions (e.g., after a certain date or when a certain condition is met).

Overall, the UTXO model has many advantages over other models, which is why Ethereum uses it.

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