Cardano Founder Highlights Best Part of Cardano’s eUTxO Architecture

Car­dano founder Charles Hoskin­son, in a recent tweet, high­lights the best part of Car­dano’s EUXTO mod­el: supe­ri­or knowl­edge of func­tion­al programming.

The best part of EUTXO is that it expos­es how lit­tle some DApp devel­op­ers know about func­tion­al programming.

— Charles Hoskin­son (@IOHK_Charles) May 7, 2022

Car­dano, sim­i­lar­ly to Bit­coin, is an Unspent Trans­ac­tion Out­put (UTXO)-based blockchain, which uses a dif­fer­ent account­ing mod­el for its ledger from oth­er account-based blockchains, such as Ethereum. Car­dano, on the oth­er hand, uses an inno­v­a­tive Extend­ed Unspent Trans­ac­tion Out­put (EUTXO) mod­el, which was intro­duced by the Alon­zo upgrade to sup­port mul­ti-assets and smart contracts.

1/14) Car­dano has made major trade offs by rely­ing on a UTXO mod­el instead of a account model

The dis­ad­van­tages of a UTXO mod­el far out­weigh the advantages

From a worse user experience,

To ADA smart con­tracts being far more limited

I will cov­er these fun­da­men­tal flaws here:

— Justin Bons (@Justin_Bons) May 7, 2022

This comes amid crit­i­cal remarks made by the founder and CIO of Cyber­Cap­i­tal, Justin Bonus, who cit­ed that Car­dano has made major trade-offs by rely­ing on a UTXO mod­el instead of an account model.

The Cyber­Cap­i­tal CIO had cit­ed lim­it­ed inter­op­er­abil­i­ty between smart con­tracts as part of the “fun­da­men­tal flaws” of EUXTO archi­tec­ture. He says that while this may restrict the types of con­tracts that can be built on Car­dano, “The trade-off for the loss in con­cur­ren­cy is par­al­lelism which gives scal­a­bil­i­ty advantages.”

This is the case because EUTXO expands the UTXO mod­el by allow­ing out­put address­es to incor­po­rate com­plex log­ic to deter­mine which trans­ac­tions can unlock them. And by adding cus­tom data to all out­puts, a sig­nif­i­cant degree of par­al­lelism is fea­si­ble due to the “local” nature of trans­ac­tion validation.

The EUTXO par­a­digm appears to have more advan­tages, such as increased secu­ri­ty and pre­dictabil­i­ty in smart con­tract exe­cu­tion costs, and more pow­er­ful parallelization.

Cardano flips Terra to rank 8th largest

Accord­ing to Coin­Mar­ket­Cap data, Car­dano has flipped Ter­ra (LUNA) to rank 8th largest in terms of mar­ket cap­i­tal­iza­tion. With a present mar­ket val­u­a­tion of $25.27 bil­lion, Car­dano now ranks ahead of Ter­ra, whose present mar­ket cap­i­tal­iza­tion is $21.85 billion.

As U.Today pre­vi­ous­ly report­ed, Car­dano pulled in a sur­prise recov­ery on May 4 before the lat­est price retreat. On-chain data indi­cates an accu­mu­la­tion spree among whales and a spike in retail interest.

IntoThe­Block recent­ly report­ed that bal­ances held by traders, which refer to address­es hold­ing for less than 30 days, have surged by about 186% in the last 30 days or so. These address­es now own 36.14% of the ADA sup­ply in total.

Car­dano (ADA) trades down 4.60% at $0.746 at the time of publication.