Bitcoin makes use of the Unspent Transaction Output (UTXO) design, similar to transactions with physical hard cash wherever Every single personal bill would wish to get traced. On other hand, Ethereum makes use of an account product, akin to your banking account by using a working balance, and that is far more centralized than Bitcoin.
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All transactions are recorded on the web inside a electronic database identified as a blockchain that employs strong 1-way encryption to be certain safety and evidence of ownership.
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