Thread by @InputOutputHK

Cardano uses the extended UTxO accounting model.

EUTxO differs from Ethereum’s account-based model. In Ethereum’s model, everyone has an account with a balance. When funds are transferred from one account to another, then balances are updated.

#Cardano $ADA

The ‘E’ in EUTxO stands for extended, improving on Bitcoin’s UTxO. Whereas UTxO smart contracts only interact with immediate requests to confirm a transaction, #Cardano’s EUTxO model improves on this.

Learn more about EUTxO here: essentialcardano.io/faq/what-is-an…

💡To better understand EUTxO, read about how it supports multiassets and smart contracts⬇️
iohk.io/en/blog/posts/…

EUTxO is a transaction mechanism combining:

➡️ Smart contracts: these lock-up UTxOs, $ADA, native assets & #NFTs.
➡️ Redeemers: user-supplied data provided to unlock locked assets & spend them.

➡️ Datum: data such as a high score, user information or other information relevant to your app
➡️ Context: information like metadata about the transaction being validated

#Plutus Core scripts can be checked to enable the confirmation of whether a tx will validate in your wallet before it goes on-chain.

Essentially protecting you from having to pay tx fees if your transaction fails.

This thread is part of a series on understanding #Plutus and the upcoming June HF improvements.

If you’d like to recap what we’ve discussed before, check out our initial thread here:

https://twitter.com/InputOutputHK/status/1521096223117221888

And if you’d like to know more, check out @JohnAlanWoods’ #Plutus explainer video here: