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UTXO-Based Model

Comparison with Account-Based Systems

The UTXO model differs significantly from account-based systems, such as those used in traditional banking or other blockchain architectures.

  • In account-based systems, transactions rely on updating a single account balance, which can create scalability bottlenecks.

  • The UTXO model eliminates the need for a shared state, as each UTXO is uniquely consumed, preventing double-spending.

  • This independence allows for greater throughput and efficiency, as transactions do not interfere with one another.

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