Bitcoin makes use of the Unspent Transaction Output (UTXO) model, corresponding to transactions with Bodily income wherever Just about every individual Invoice would want to get traced. On other hand, Ethereum utilizes an account model, akin to a banking account having a working balance, that is a lot more centralized than Bitcoin.
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All transactions are recorded online inside of a electronic database identified as a blockchain that makes use of powerful just one-way encryption to make certain security and evidence of possession.
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