The alliance formed by UTXO blockchains recently acquired two more esteemed partners. DigiByte and Alephium recently entered the collaboration comprising names like Komodo, Topl, Nervos, and Ergo.
The alliance aims to boost the scalability, programmability, and interoperability features of the UTXO blockchains. With the world tilting towards rapid technological advancements, blockchain is the epicenter of growth.
The technology is streamlining security, trust, and transparency to support the overall ecosystem. That is why the UTXO alliance is capitalizing on the movement and promoting it globally.
With multiple industry-leading ventures forming a partnership, the shared initiatives and efforts will surely attract a mainstream audience. Here are several reasons why UTXO blockchains are better than account-based ventures.
- The networks do not use the same address for every transaction. It’s impossible to monitor the address or track its balance. In addition, UTXO blockchains erase the chance of private information leaks.
- UTXO-based ledgers facilitate parallel transaction monitoring. In addition, it reduces network congestion, leading to a stable trading experience.
- The blockchains use sidechains and off-chain protocols to facilitate interoperability.
- UTXO ledgers allow users to predict the validity and cost of a transaction before processing it on the chain. Moreover, transaction costs are lower on a UTXO premise since it does not charge any gas fees.
Integrating UTXO properties with open-source research helps the alliance to elevate the capabilities of different networks. Additionally, it fosters interoperability between ledgers while allowing the enterprises to investigate scalability.
The ventures are also finding new programmability solutions, aiming to design better languages. It will create diversity in dApps and smart contracts on UTXO blockchains.
Cheng Wang, Core Developer and Founder at Alephium, talked about the development. According to Cheng, the increasing demand for secure and scalable dApps is evident. It adds new prospects for DeFi and UTXO blockchains. UTXO-based models are expected to lead the DeFI industry, and the alliance will become the frontrunner in its global adoption. The integrity of the UTXO concept has formed the foundation for Alephium’s approach to blockchain scaling. Alephium presents a stateful UTXO framework that provides layer-1 scalability as well as the same amount of programmability as the account model. To solve DeFi’s safety concerns and execution slowdown, Alephium additionally proposes a separate virtual machine (VM) based on the UTXO concept.
Bringing these efforts together for a single purpose enhances the parties’ efforts while also contributing to open-source research.
Because of its better deterministic architecture, scalability advantages, and verified safety, Input Output Hong Kong chose the UTXO model for Cardano. Participants of the UTXO alliance include some of the brightest and best blockchain talents in the industry, all dedicated to partnering, growing, and extending the standard.