Account Model
Definition
Ethereum's approach, where each address holds a running balance incremented or decremented by transactions. Simpler to reason about but less transparent about the exact provenance of funds than the UTXO graph.
Related terms
- Block Confirmation
- The count of blocks added to the chain after the block containing a specific transaction. Higher confirmation counts mean greater computational cost...
- Distributed Ledger
- A transaction record replicated across many independent nodes. Each node holds a full or partial copy and validates new entries against the...
- Private (Permissioned) Blockchain
- A network where participation is restricted to known, approved nodes. Used by banks and supply chains for transaction settlement. Records are not...
- Public Blockchain
- A permissionless network where anyone can read the ledger, submit transactions, or run a node. Bitcoin and Ethereum are public. The ledger...
- UTXO (Unspent Transaction Output)
- The fundamental accounting unit of the Bitcoin protocol. Each transaction consumes previous UTXOs as inputs and creates new UTXOs as outputs. The...
Explained in
- Blockchain Fundamentals for InvestigatorsEthereum's approach, where each address holds a running balance incremented or decremented by transactions. Simpler to reason about but less transparent about...