My mind may be so ingrained in UTXOs that I struggle at times to understand how exactly transactions are recorded on Ethereum, and then again when dealing with contracts, how if any do those transactions differ? The Ethereum paper confused me more than it helped me understand
This is best comparison of the Bitcion’s UTXO vs Ethereum’s (Account Based) Model i’ve found at a high level.
In Ethereum, there are two types of accounts, private key controlled user accounts and contract-code controlled accounts (smart contracts). This is important because it is a vital reason why Ethereum chose the Account based model over the UTXO model. Because Ethereum uses a Turing complete programming language (Solidity) and one of its main features are smart contracts, the account model affords much greater simplicity than the UTXO based model used by Bitcoin. Ethereum has a substantial amount of decentralized applications which contain arbitrary state and code, it does not make sense to employ the UTXO model used in Bitcoin as it would inherently limit the ability of smart contracts to execute.
While one isn’t necessarily superior to the other, the tradeoffs are rooted in the visions of each blockchain design (Bitcoin=eCash or eGold) vs (Ethereum as a ‘World Computer’).
More on these tradeoffs:
Thanks for these resources I had not seen them.