Thread by @Soorajksaju2

''Determinism'' is a core feature of #Cardano's E-UTxO ledger model

This is one of those features that differentiate and brings an edge over the indeterministic nature of #Ethereum's Account based ledger model

So let's dive in and explore the concept of ''Determinism'':🧵👇

So what is Determinism?

in the context of transaction and script processing

Determinism is the ability that enables a user to predict the impact and outcome of a transaction locally (off-chain)

before the actual on-chain execution of the transaction

This is a core feature of E-UTXO-based blockchains, like Cardano

So why are E-UTxO-based blockchains deterministic?

What is the feature that allows for the off-chain predictability of the outcome of the transactions?

As we know

the main difference between an E-UTxO and an Account-based ledger model is the difference in state

in E-UTxO based model state is ''local''

whereas in an account-based model the state is ''global''

So when a user creates and submits the transaction on an E-UTxO based blockchain

due to the localized nature of the state

they are explicitly declaring what their section of the ledger should look like after the transaction is accepted

this makes the off-chain predictability of the outcome of the transaction possible

this prevents the following from happening in the case of E-UTxO:

1. unexpected script validation outcomes or failures

2. unexpected fees

3. unexpected ledger or script state update

So let's understand what happens when a chain is indeterministic!

Account-based blockchains, like #Ethereum, are indeterministic

which means

#Ethereum/EVM cannot guarantee the predictability of the transaction’s effect on-chain

#Ethreum/EVM cannot do it

because the state of the blockchain could change between when you construct your transaction and when you submit it

in this case

the smart contract needs to be trusted to do what’s in the best interest of the person who submitted the transaction

that means when a developer code the smart contract

he/she needs to consider all the possible scenarios

where a state change could happen during the execution of a transaction

This is almost impossible to do

And a huge amount of development effort, source of bugs, and attack surface area for hacks come from this particular flaw

so the next time when your transaction fails on #Ethereum/EVM-Chain

think about the indeterministic nature of the ledger

TL;DR -

• In contrast to E-UTxO, Account-based blockchains like #Ethereum or EVM-Based chains are indeterministic

• This risks monetary loss, unpredictably high fees, and additional opportunities for adversarial behavior

If you found this thread valuable:

1. Toss me a follow for more threads on technical deep dives and Defi→ @Soorajksaju2

2. If you are curious about upcoming upgrades on #Cardano, here’s a thread that you might enjoy:

https://twitter.com/Soorajksaju2/status/1513610522226212868?s=20&t=Z8sqQLMCFDwquLWFqCqhHw