Qtum_Foundation

#Qtum became a leader in the #blockchain industry by making a vital decision - choosing between the #UTXO and #AccountsModel. This decision had a big impact on security and scalability 🔐. Let's take a closer look at this crucial choice 🧵

The #UTXO model, which is part of #Bitcoin's architecture, treats transactions as outputs from previous transactions. These outputs are indivisible, ensuring the immutability of the #blockchain and providing security and trust.

The UTXO model enables traceability and accountability, making it ideal for regulatory compliance and forensic accounting. This security is why #Qtum chose it as the foundation.

In contrast, #Ethereum uses the #AccountsModel. It tracks the entire state, including balances and smart contract data, allowing for more complex applications like #DApps and #DAOs. However, it's less battle-tested.

#Qtum had to choose between security and functionality, but they prioritized security while still acknowledging the importance of versatile applications.

The solution? #Qtum's Account Abstraction Layer (#AAL) 💡. It bridges the gap between security and functionality, offering compatibility with the Ethereum Virtual Machine (#EVM) on a secure #UTXO base.

Read more about #Qtum's decision and solution to the challenges in our recent article,   medium.com/@Qtum/choosing-betw...