Thread by @Soorajksaju2

'Parallelism' is a core feature of #Cardano's EUTxO ledger model
 
This is one of those features that enable the  creation of scalable DApp on #Cardano
 
So let's dive in and explore the concept of 'Parallelism':🧵👇

So what is ''Parallelism'' ??

In the context of computation

The term Parallelism refers to techniques to make programs faster by performing several computations at the same time

Why is parallelism important in the context of #Blockchain?

A blockchain architecture that allows transaction parallelism is a requirement to have high throughput on-chain

and it allows for the building of scalable Dapps on top of the #Blockchain

So what determines the ability of Blockchain to have transaction parallelism?

As we all know

the difference in ''State'' is one of the core factors that differentiate

#Ethereum's account-based model from the E-UTxO model of #Cardano

The Account-based ledger model creates the notion of a 'shared mutable state'
 
Which means
 
•If two or more parties can change the same data 
 
•And if their lifetimes overlap
 
Then there is a risk of one party's modifications preventing other parties from working correctly

This hinders the parallel execution of transactions on an account-based model

On an account-based model, transactions are as serialized as possible due to this limitation

this does not take advantage of the multi-core architecture of modern processors and limits the throughput

This is where we see the benefits of the E-UTxO model of #Cardano

Inherently fragmented the ledger state is one of the core features that differentiate

#Cardano's E-UTxO architecture from the Account-based ledger model of #Ethereum

The UTXO-based designs get parallelizability by design

And E-UTxO model of #cardano brings smart contract capabilities to the UTxO

by extending it with arbitrary script and data

which allows for the parallelizable smart contract execution

But why did the new Dapps, especially AMMs (automatic market makers) trying to deploy on #Cardano encountered the concurrency issue?

To understand that, you have to understand the subtle difference between

''Paralellism'' and ''Concurreny''

So what is concurrency?

Concurrency is the ability of multiple actors to ''make progress on a task'', without interfering with each other.

Contention happens,

when multiple actors are engaged in a task, actually interfere with each other and hinder the process

#Ethereum's Account-based model is decent at concurrency, terrible at parallelism

The E-UTXO model is fantastic at parallelism

but depending upon the protocol designs

UTxO model could face contention, making it not very concurrent

#Cardano aims to offer concurrent, parallel execution of transactions with its EUTxO model without contention

Because of the entirely different ledger architecture of #Cardano and #Ethereum

A developer can’t just use a copy of the #Ethereum smart contract to deploy a scalable Dapp on Cardano

This requires some innovation and engineering when designing your protocol on #Cardano

which leverages the inherently fragmented nature of the UTXO model

For eg: DApps should split up their on-chain state across many UTXOs

which could enable concurrent parallel execution in the Dapp, thereby allowing higher throughput

TL;DR -

• #Cardano's EUTxO ledger model has an inherently fragmented ledger state

• Which makes parallel transaction processing possible

• A smart contract design logic that allows for concurrent parallel execution can benefit from a significant increase in throughput

If you found this thread valuable: 1. Toss me a follow for more threads on technical deep dives and Defi→
@Soorajksaju2

2. Here’s another thread on 'Djed'- the first stable coin on #Cardano, that you might find useful:

https://twitter.com/Soorajksaju2/status/1524102707589566465?s=20&t=94IrKK_oP9_mshVIiDevqw