How do Bitcoin and Ethereum differ in the way they keep track of transactions?
Ethereum uses an account model: the blockchain directly records each account’s balance, and a transfer deducts funds from one account and adds them to another. Bitcoin uses the UTXO (Unspent Transaction Output) model: each transaction consumes several existing outputs and creates new ones.
The Bitcoin balance displayed in a wallet is calculated by adding up all the UTXOs that belong to you. There is no “balance” field on the blockchain.
$BTC uses the UTXO model, so the balance displayed in the wallet is actually the sum of many unspent outputs.
#BTC
The above is for informational purposes only and does not constitute investment advice.
Ethereum uses an account model: the blockchain directly records each account’s balance, and a transfer deducts funds from one account and adds them to another. Bitcoin uses the UTXO (Unspent Transaction Output) model: each transaction consumes several existing outputs and creates new ones.
The Bitcoin balance displayed in a wallet is calculated by adding up all the UTXOs that belong to you. There is no “balance” field on the blockchain.
$BTC uses the UTXO model, so the balance displayed in the wallet is actually the sum of many unspent outputs.
#BTC
The above is for informational purposes only and does not constitute investment advice.