How do Bitcoin and Ethereum differ in the way they record balances?
Ethereum has two types of accounts: externally owned accounts (EOAs), controlled by private keys, and contract accounts, controlled by code. The fee for a Bitcoin transaction equals the sum of all its inputs minus the sum of all its outputs. This difference goes to the miner who includes the transaction in a block.
The account model is more like an ordinary bank account, with the balance easy to see, and it’s also more convenient for writing smart contracts. The trade-off is that transactions from the same account must be queued and executed in nonce order.
$BTC uses the UTXO model. The balance shown in a wallet is actually the sum of multiple unspent outputs.
Ethereum has two types of accounts: externally owned accounts (EOAs), controlled by private keys, and contract accounts, controlled by code. The fee for a Bitcoin transaction equals the sum of all its inputs minus the sum of all its outputs. This difference goes to the miner who includes the transaction in a block.
The account model is more like an ordinary bank account, with the balance easy to see, and it’s also more convenient for writing smart contracts. The trade-off is that transactions from the same account must be queued and executed in nonce order.
$BTC uses the UTXO model. The balance shown in a wallet is actually the sum of multiple unspent outputs.