Learn about how the two main ways of blockchain bookkeeping – UTXOs and Accounts – work in this video. Related Videos …
UTXO (Bitcoin) vs Account-Based (Ethereum) Blockchains Explained: What's The DIFFERENCE??
Learn about how the two main ways of blockchain bookkeeping – UTXOs and Accounts – work in this video. Related Videos …
Bitcoin uses the UTXO model, where your coins are like individual bills or coins—you spend them by using specific chunks of value and get change back. Ethereum uses an account-based model, like a bank account, where your balance goes up or down with each transaction. UTXO provides better privacy and scalability, as each piece of value is separate and can be processed in parallel. In contrast, Ethereum’s model is easier for smart contracts, as everything interacts through a single account state. The key difference is that Bitcoin tracks unspent outputs, while Ethereum tracks account balances directly.