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BTC 
ETH Vitalik Buterin, co-founder of Ethereum, recently made important remarks on Ethereum and Bitcoin, and his statements and actions have always been closely watched by the market.
Butrin pointed out that they are exploring a hybrid model on Ethereum that aims to integrate the advantages of different blockchain governance methods to improve scalability. He said that Ethereum will not only adopt a single state management model in the future, but hopes to combine the respective advantages of UTXO type states, dynamic states, and models in between.
In this context, Butrint mentioned the UTXO model adopted by Bitcoin and praised: "The Bitcoin camp deserves high praise for being the first to propose such ideas through projects such as Utreexo. A large part of them." Judging from the existing model, in Ethereum, transactions of ETH or ERC-20 tokens create records in the persistent state of the network, thereby increasing the storage burden on nodes. In contrast, Bitcoin's UTXO model removes records of spent from the system and creates a new UTXO. As a result, the verifier's storage burden is reduced because there is no need to maintain old records.
However, Buterin added that his remarks did not mean that Ethereum would fully switch to the UTXO model. He said that such a plan is currently only being evaluated as part of research and protocol design, and it would be incorrect to interpret this statement as meaning that Ethereum will abandon the existing account model in the short term.
However, expert analysis believes that if Ethereum's efforts in this regard bear fruit, its goal is to achieve higher transaction processing capabilities while controlling node operating costs and maintaining decentralized characteristics.
* This article does not constitute investment advice.
