- IOHK and Nervos will conduct joint research to improve the UTXO transaction verification model on Cardano.
- The partners will create a universal standard for UTXO models and form a global alliance for networks based on that model.
Multi-asset blockchain Nervos has announced a collaboration with the company IOHK. The partnership will be divided into 2 stages and will focus on bringing more security to the smart contracts hosted on Cardano. Recently, IOHK has announced significant progress to introduce decentralized finance capabilities on Cardano with Goguen, which will bring the capability of smart contracts.
In the first phase, the partners will do joint research to improve the Unspent Transaction Output (UTXO) model. Nervos, Bitcoin and Cardano are using this model to track unspent transactions made by a user on all their accounts and determine the funds a user has to make a new transaction. In contrast, Ethereum uses a computational account model to track the global balance.
The partners will create an improved model for UTXO-based blockchains. Thus, they intend to increase the security and scalability. Thus, Nervos and IOHK want to accomplish a greater adoption for the blockchain industry. IOHK Technical Manager Romain Pellerin said the following about the partnership:
The Cardano and Nervos communities are working on similar research streams to offer robust smart contract technologies, native token standards, cross-chain asset transfers, and novel crypto primitives. It may be surprising to see PoW and PoS initiatives join forces, but we believe that our industry must collaborate more if we want blockchain technologies to be adopted widely.
Improving the transaction model of Cardano
Nervos and IOHK will create a secure infrastructure to attack problems such as double spending and hacking risks that have affected hundreds of users with the emergence of the DeFi sector. The partners will publish research papers, open-source enhancements, and have set out to create a universal standard model for UTXOs.
In addition, IOHK and Nervos believe it is necessary to form a “global UTXO alliance” in conjunction with other blockchains using this model. Thus, there can be greater collaboration in the development and progress of this transaction model. Nervos co-founder Keving Wang added:
UTXOs are superior to account models in many ways and provide improved security, privacy, and scalability, all of which are critical for DeFi. By working with IOHK to further develop and define UTXO standards, we’ll continue to provide a secure alternative for the broader blockchain industry.
As reported by CNF, the Cardano node development team, led by Volodymyr Hulchenko, is currently working on Cardano’s Extended UTXO model. This capability is a complement to Shelley’s UTXO model and is needed to support smart contracts on the Plutus platform.
Der Beitrag Cardano’s IOHK and Nervos to form a “global UTXO alliance” erschien zuerst auf Crypto News Flash.