Vitalik Buterin supports bitcoin-inspired Ethereum extension design
Ethereum co-founder Vitalik Buterin supports a bitcoin-inspired extension design that compresses persistent payment states and packages large number of transaction batches into a 128 kB proof.
Key Points
Buterin supports a Bitcoin-inspired UTXO solution to simplify Ethereum payments. The design compresses persistent storage from 150 GB per billion accounts to approximately 300 MB per billion spent output. No release date has been announced for both proposals, and the Ethereum client team has not committed to implementing them.
Ethereum UTXO Design
Buterin recognized this direction in an August 16 platform post, praising Bitcoin developers for their contribution to Utreexo and describing the approach as part of Ethereum's proposed expansion strategy. The core issue is state growth. The Ethereum node saves all account records, each record occupying approximately 100 to 150 bytes, and will remain even after the account ceases to be active. A billion accounts may require up to 150 GB of storage space, and idle accounts will still add to the burden.
Ethereum Foundation researcher Toni Wahrstatter proposed in July a UTXO-style tracking approach for simple payments, replacing persistent balances with output that is removed immediately after a transaction. Each spent output accounts for about one-third of a byte, and a billion outputs only cost about 300 MB; payment can also cover its own expenses.
Vitalik Buterin Outlook
Developer conall.gwei combined this idea with Buterin's January proposal to package transaction check batches into compact certificates, suggesting that block builders could publish a 128 kB summary for large payment batches. Buterin responded: "Bitcoin enthusiasts deserve credit for being the first to come up with many of these ideas (see Utreexo)." Buterin wants Ethereum to support UTXO style and dynamic account status without forcing every node to bear the same growth burden. Utreexo does not need to retain the complete collection to verify tokens, and STARK-based proof already appears in his Lean Ethereum roadmap. Neither proposal has announced a release date.
Cardano co-founder Charles Hoskinson criticized it, saying Ethereum was copying Cardano's token tracking model after the July proposal. However, this controversy is not the core. Lower status requirements help maintain decentralization as payments grow.
The market reaction was flat, with ETH trading at about US$1,903 on the day, up 1.28%, but still below US$2,000 and has been for several weeks. Implementation remains the main test. If the client team adopts these two ideas, Ethereum can reduce the growth of permanent account status without abandoning the flexible account model.
Throughout 2026, Buterin has always believed that the deeper bottleneck for Ethereum is state and data storage, not just Layer-2 capacity. The Ethereum Foundation also set protocol priorities in February and changed its core encryption algorithm this month to deal with quantum threats.

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