Bitcoin takes advantage of the Unspent Transaction Output (UTXO) design, similar to transactions with Actual physical cash where by Just about every specific bill would wish being traced. On other hand, Ethereum makes use of an account model, akin to your checking account having a running balance, which happens to be far more centralized than Bitcoin.
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All transactions are recorded online in the digital databases referred to as a blockchain that uses highly effective 1-way encryption to be certain safety and evidence of ownership.
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