When the Qtum team set out to build a new blockchain, they faced a strategic decision that would impact everything from security protocols to scalability and application support.
They weighed factors like long-term viability and user needs and had to understand the UTXO and Accounts models to achieve their vision.
Thanks to their hard work and careful planning, they revolutionized digital transactions and decentralized applications with a powerful and flexible blockchain.
The UTXO Model
The UTXO model is the foundational architecture behind the Bitcoin blockchain. Transactions are viewed as outputs from previous transactions that have not been spent.
These outputs are indivisible, meaning they are either spent in their entirety or not at all.
The UTXO model’s binary nature significantly impacts blockchain security and integrity. Once a transaction is confirmed and added to the blockchain, it becomes part of the immutable ledger.