Cardano combines the ability to handle smart contracts with Bitcoin UTXO.
The UTXO model is a fundamental element of Bitcoin and other cryptocurrencies.
The cryptocurrency Cardano (ADA) has revealed that it extends the unspent transaction output accounting system by adding smart contracts to the Bitcoin UTXO model. The Cardano blockchain helps enhance the Bitcoin blockchain’s accounting model.
On July 18, Input Output Global (IOG), the company behind the Cardano blockchain, announced its new plan for unspent transaction output. The Cardano blockchain added Bitcoin’s unspent transaction output (UTXO) accounting model, along with the ability to handle smart contracts, into an Extended unspent transaction output (EUTXO) accounting model.
Unspent transaction output (UTXO) is known as transaction output and can be used as the input for new transactions. UTXO is a technical term for the amount of cryptocurrency that remains after the transactions. Moreover, this model is a fundamental element of Bitcoin and other cryptocurrencies.
Cardano Enhances the Bitcoin UTXO Model
The UTXO is based on blockchains and account or balance chains. According to the report, Cardano combines the ability to handle smart contracts with Bitcoin’s unspent transaction output. Cardano introduces the EUTXO to provide the implementation of smart contracts and a deterministic mechanism, along with many other advantages. Moreover, this strengthens EUTXO’s ability to handle both smart contracts and transactions.
Input Output made its first announcement of combining Bitcoin’s UTXO accounting model with the ability to handle smart contracts into an EUTXO on February 23. Following that, after four months, the Cardano team has revealed that it completed the extended process.
At the time of writing, the trading price of Cardano is around $0.3052. With a decline of over 2.17% in the last 24 hours. Moreover, the trading volume has experienced an increase of over 2.19%, according to CoinMarketCap.