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Is Ethereum Copying Cardano Innovation? Here’s Why Community Is Talking About New eUTXO

Key Insights:

  • Ethereum’s native UTXO proposal sparks fresh debate with Cardano supporters.
  • Charles Hoskinson says Ethereum is adopting an idea Cardano introduced years ago.
  • Hoskinson also says the Leios upgrade could bring Cardano close to XRP Ledger speed.

Cardano eUTXO is back in focus after Charles Hoskinson reacted to the Ethereum researchers’ proposal for native UTXOs. The paper started a fresh debate, with Charles Hoskinson saying Ethereum is now moving toward an idea Cardano introduced years ago, while supporters compared both blockchain designs.

Cardano eUTXO Draws Fresh Attention After Ethereum Proposal

Cardano eUTXO is once again at the center of discussion after Ethereum researchers released a paper on native UTXOs for the network’s execution layer. The research looks at a different way of handling simple payments on Ethereum.

It says the current account model keeps adding a permanent state whenever an address receives ETH or an ERC-20 token for the first time. As more users join the network, that state continues to grow.

The proposal suggests using native UTXOs for payment transactions that do not need permanent account storage. It says this could cut permanent state usage for those payments by about 99.8 percent while still allowing Ethereum to keep its account model for other activities.

The paper explains that a UTXO is created once, spent once, and then removed. It also describes how the system could work with transaction verification, payment sponsorship, and history records without replacing Ethereum’s existing design.

A Closer Look into the Update

Soon after the paper was shared, Cardano founder Charles Hoskinson responded on X. Hoskinson said he has worked on the same idea for more than 10 years and pointed to Cardano as a network that already uses the Extended Unspent Transaction Output, or eUTXO, model.

Commentary on Ethereum Native UTXO Introduction | Source: Charles Hoskinson
Commentary on Ethereum Native UTXO Introduction | Source: Charles Hoskinson

He also said Cardano reached the number three position on CoinMarketCap with millions of users while using that design. He argued that Cardano does not receive enough credit for its work and claimed Ethereum has avoided talking about Cardano while now moving toward the same idea.

The Ethereum research itself does not say it is copying Cardano. Instead, it focuses on how native UTXOs could fit into Ethereum without removing the account system already used by the network. Even so, the paper quickly became a talking point across the crypto community, with many users comparing the two blockchains.

Charles Hoskinson and Community Compares Cardano And Ethereum

It is worth noting that the discussion did not stop with the comments from Charles Hoskinson. Cardano supporter Dori said the research highlights one of the biggest differences between the two networks.

According to the post, Ethereum’s permanent state keeps growing, making node storage larger over time. The post added that this could increase the cost of running nodes and raise concerns about decentralization.

Dori also said Ethereum’s account model has been linked to issues such as MEV, reentrancy attacks, and limits around parallel processing. In comparison, the post described Cardano’s eUTXO model as a design that was built to avoid many of those problems through years of research and testing.

Not everyone sees the proposal in the same way. The Ethereum paper is still a research document. It discusses one possible direction for future development and does not confirm that Ethereum will change its current system.

Still, the proposal has reopened an old debate about the strengths of both blockchain models.

ADA Looks To Match XRP Ledger Speed

The latest discussion comes as Cardano continues work on another major upgrade. BSCN recently reported that Charles Hoskinson believes the planned Leios upgrade could increase Cardano’s throughput by as much as 60 times.

He said that level of performance could put the network on the same level as the XRP Ledger for transaction speed.

Charles Hoskinson in Focus Amid Cardano and XRP Ledger Comparison | Source: BSCN
Charles Hoskinson in Focus Amid Cardano and XRP Ledger Comparison | Source: BSCN

Hoskinson also said faster processing could attract more users, increase activity on the network, and support growth in decentralized finance. At the same time, he warned that Cardano’s progress depends on important upgrades receiving community approval.

For now, Ethereum’s research paper and Cardano’s own plans have given the community another reason to compare both projects.

While Ethereum studies new ways to improve payments and reduce state growth, Cardano supporters believe the latest proposal shows that ideas behind Cardano eUTXO are gaining wider attention across the blockchain industry.

Disclaimer

The contents of this page are intended for general informational purposes and do not constitute financial, investment, or any other form of advice. Investing in or trading crypto assets carries the risk of financial loss. The forecasted data (also called “price prediction”) on this page are subject to change without notice and are not guaranteed to be accurate.

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Godfrey Benjamin
Godfrey Benjaminhttps://www.thecoinrepublic.com/
Godfrey Benjamin is an experienced crypto journalist whose main goal is to educate everyone around him about the prospects of Web 3.0. His love for crypto was birthed when, as a former banker, he discovered the obvious advantages of decentralized money over traditional payments. With his vast experience covering various aspects of Web3, Godfrey's articles has been featured on Blockchain.news, Cryptonews and Coingape, among others.