ReddCoin (RDD) - UTXO vs EVM, a brief explanation.

What it means to say that #ReddCoin (#RDD) is a "native blockchain", a "UTXO coin" and a "first generation legacy #cryptocurrency":

Almost every #blockchain project you hear about these days is a #token (or an #NFT, another specific kind of token) on one of the majoe players' underlying chain. A Polygon (MATIC) token, or Ethereum (ETH) token, to name the top two, is not at all the same as a native blockchain project, and any proejct still standing after eight years is necessarily providing something right to the users.

But to add some clarity on what that really, means, what's the difference between a UTXO "Bitcoin-like" blockchain providing it's own "#layer1" and validation services, and the "account-based" EVM model on the new, popular, "rent-to-own" chains like #MATIC and #ETH:

In a native UTXO (unspent transaction output) blockchain like ReddCoin or Bitcoin, each transaction spends one or more previous UTXOs and creates one or more new UTXOs. The total value of the new UTXOs must be equal to the total value of the spent UTXOs, and the difference between the two is the transaction fee paid to the miners. In a #staking chain such as ReddCoin, miners are replaced by each and every user #staking to secure the network instead, commonly referred to as "#ProofOfStake". ReddCoin has #pioneered staking safely and securely since 2015 after a full year of #PoW operation after launch. Proven technology, to be sure!

In an account-based or #EVM (#Ethereum Virtual Machine) blockchain like #Polygon or Ethereum, the concept of #UTXOs does not exist. Instead, each account has a balance, and the account can spend some of its balance by creating and signing a transaction that specifies the recipient and the amount of the transfer. In this model, #transactions do not create new outputs; they only update the balances of the accounts involved in the transaction.

One consequence of this difference is that in a UTXO blockchain, it is not possible to have a negative balance, because all spending must be funded by a UTXO. In an account-based blockchain, it is possible to have a negative balance if the account has been overspent.

Another consequence is that in a UTXO blockchain, each UTXO has a distinct owner and can only be spent by the owner. In an account-based blockchain, the balance of an account can be controlled by one or more private keys, and multiple keys can be used to sign transactions that spend the balance.

There are also some differences in transactions are validated and added to the blockchain. In a UTXO blockchain, the validity of a transaction is determined by checking that the inputs of the transaction are unspent UTXOs, and the output values are equal to or less than the input values. In an account-based blockchain, the validity of a transaction is determined by checking that the account has sufficient balance to cover the amount being spent, and that the signature of the transaction is valid.

https://reddcoin.com

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