user1520: What are the benefits of Cardano's eUTXO transaction model compared to Ethereum's account-based transaction model? Are there any significant differences?

user1346: I am sure there is a lot of documentation around it. But just to scratch the surface:

Both are not same at all.
ETH fees is charged even for failed transactions. But in eUTXO, your fees is collected only if your transaction succeeds. This alone is huge.
Smart contracts developed in eUTXO model are much more dependable, reliable than the account model.
I am sure you already know that ETH only went with account model because they could not think of a way to make smart contracts work with the Bitcoin's UTXO model.

But it is a really interesting comparing both Account and UTXO. Links are there above in some other comments.

user1456: The EUTXO model also makes it much easier to scale. Charles talks about that in this great video -- the take-away here is that Cardano will be much easier to scale than Ethereum.

user28: There is a nice blog post bu IOG: Cardano’s Extended UTXO accounting model – built to support multi-assets and smart contracts that discusses the difference between two models.
For a more in depth comparison, I recommend the UTxO- vs account-based smart contract blockchain programming paradigms paper.
To sum UTXO up:

A UTXO is the output of a previous transaction, which can be spent in
the future
UTXO chains have no accounts. Instead, coins are stored as
a list of UTXOs, and transactions are created by consuming existing
UTXOs and producing new ones in their place
Balance is the sum of
UTXOs controlled by a given address
UTXOs resemble cash in that they
use ‘change’, and are indivisible (UTXOs are used whole)

To sum up the Account/Balance model:

This accounting model resembles how a bank operates
Users have accounts that hold their coin balance
It is possible to spent partial balances
The concept of change does not apply


1520: <p>What are the benefits of Cardano's eUTXO transaction model compared to Ethereum's account-based transaction model? Are there any significant differences?</p>
 1346: <p>I am sure there is a lot of documentation around it. But just to scratch the surface:</p>
<ol>
<li>Both are not same at all.</li>
<li>ETH fees is charged even for failed transactions. But in eUTXO, your fees is collected only if your transaction succeeds. This alone is huge.</li>
<li>Smart contracts developed in eUTXO model are much more dependable, reliable than the account model.</li>
<li>I am sure you already know that ETH only went with account model because they could not think of a way to make smart contracts work with the Bitcoin's UTXO model.</li>
</ol>
<p>But it is a really interesting comparing both Account and UTXO. Links are there above in some other comments.</p>
 1456: <p>The EUTXO model also makes it much easier to scale. Charles talks about that in this <a href="https://youtu.be/eHus4eqPID4" rel="nofollow noreferrer">great video</a> -- the take-away here is that Cardano will be much easier to scale than Ethereum.</p>
 28: <p>There is a nice blog post bu IOG: <a href="https://iohk.io/en/blog/posts/2021/03/11/cardanos-extended-utxo-accounting-model/" rel="noreferrer">Cardano’s Extended UTXO accounting model – built to support multi-assets and smart contracts</a> that discusses the difference between two models.</p>
<p>For a more in depth comparison, I recommend the <a href="https://ipfs.blockfrost.dev/ipfs/QmRkw1hRfdqPdZMpShDY9oEQQLeAywiY4ZaV9DC7qdDpdh" rel="noreferrer">UTxO- vs account-based smart contract blockchain programming paradigms</a> paper.</p>
<p>To sum UTXO up:</p>
<ul>
<li>A UTXO is the output of a previous transaction, which can be spent in
the future</li>
<li>UTXO chains have no accounts. Instead, coins are stored as
a list of UTXOs, and transactions are created by consuming existing
UTXOs and producing new ones in their place</li>
<li>Balance is the sum of
UTXOs controlled by a given address</li>
<li>UTXOs resemble cash in that they
use ‘change’, and are indivisible (UTXOs are used whole)</li>
</ul>
<p>To sum up the Account/Balance model:</p>
<ul>
<li>This accounting model resembles how a bank operates</li>
<li>Users have accounts that hold their coin balance</li>
<li>It is possible to spent partial balances</li>
<li>The concept of change does not apply</li>
</ul>
