Tuesday, October 26, 2021
Home Crypto News Market Nervos And Cardano Will Increase The Security Of Smart Contracts By Improving...

Nervos And Cardano Will Increase The Security Of Smart Contracts By Improving The UTXO Model

- Advertisement -

Nervos and Cardano have launched a research initiative to improve smart contracts‘ security by improving the system of unspent transaction outputs (UTXO).

Nervos and the Cardano Development Team (IOHK) will co-author research papers on improving the UTXO model and future open-source developments, exploring the possibility of creating a universal UTXO standard.

They ally with other blockchains using the UTXO model to collaborate on research, development, and education in the industry.

The utxo model tracks the unspent transaction outputs of a user across all their addresses and each transaction. According to Nervos, this is a more secure alternative to the account-based accounting method used by smart contract-based blockchains, such as Ethereum. The account-based accounting method is more vulnerable to hacks, especially for decentralized finance (Defi) protocols, because it tracks the user’s total account balance but not individual transactions.

Nervos and IOHK have adopted modified versions of the UTXO model for their blockchains. The two projects will share confidential information to improve the method.

“UTXOs outperform bill-based models in many ways and provide enhanced security, privacy, and scalability, which is critical for Defi,” said Nervos co-founder Kevin Wang.

According to the CipherTrace report, many Defi projects rely on unverified smart contracts with vulnerabilities that can be exploited by attackers. Last week, Cardano held a hard fork as part of the transition to the third primary development phase, which will focus on the functions of blockchain smart contracts. Nervos recently introduced its new sudt token standard, which will compete with the ERC-20 Ethereum standard.

- Advertisement -
Ammara Mubin is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Ammara authored more than 1,000 stories for TheCryptoBasic, CryptoComes and other fintech media outlets. She is particularly interested in regulatory trends around the globe that are shaping the future of digital assets.


Please enter your comment!
Please enter your name here

- Advertisment -

Recent News & Articles

Good Games Guild Announces Triple IDO on Seedify, Ignition, MoonStarter

Jakarta, Indonesia, 24th October, 2021, Good Games Guild, a gaming hub that aims to create the largest virtual world economy by optimizing its owned...

YearnNFT Finance: An Advanced Approach to NFTs with Digital Art and Collectibles

Since August, the market sales with respect to NFTs have skyrocketed, where a single NFT sales round up to millions worth. There have been...

The Bank Of Israel Aims To Launch Its CBDC On Ethereum

For now, central banks around the world are still working on developing and testing their own CBDCs, but there are new ones that are...

Russian Central Bank Head Says Russia Is Not Ready To Launch Crypto ETFs

The head of the Bank of Russia, Elvira Nabiullina gave a negative answer to the question about the possibility of trading cryptocurrency ETFs in...

Spanish Banks Anxiously Waiting For Central Bank Approval To Work With Cryptocurrencies

Spanish banks are interested in providing cryptocurrency services directly to clients and expect the Spanish Central Bank will bring regulatory clarity for crypto.

Reddit Intend To Bring Its Non Fungible Token (NFT) Platform

Reddit is looking to hire people for what could become a new platform for non-fungible tokens (NFTs) and digital goods. ...

Second Bitcoin ETF, Valkyrie Bitcoin Strategy ETF (BTF) Started Trading On Nasdaq

On the Nasdaq Stock Exchange under the ticker BTF, a Bitcoin futures ETF from Valkyrie Investments began trading at a price of $25.5.

Subscribe To Our Newsletter

Get Updated with All The latest Crypto News, Articles, Reviews, Analysis and much more. Delivered Every Monday.