DeFiChain Blog

Digital currencies rely on the ability to transfer funds easily between parties. On blockchain networks, transactions are initiated by the owner of the currency, specifying the amount to send and the recipient. Blockchains use record-keeping models like the Unspent Transaction Output (UTXO) model or the accounts-based model to enable these transfers. In this article, we will focus on the basics of the accounts-based model - how it functions and differs from UTXO. Grasping Blockchain Basics To fully understand the accounts-based model, we must first cover some blockchain fundamentals. A blockchain is essentially a state machine – a system that transitions between defined states. It records prior transactions and events to represent the current state at any given time. Adding new transactions or blocks triggers state transitions according to preset protocol rules. All blockchains follow the same basic scheme, whether UTXO-based or accounts-based: Transactions are broadcast to the network...

Have you ever wondered what's happening behind the scenes when you make a Bitcoin transaction?  The answer lies in Bitcoin's underlying database model known as the Unspent Transaction Output (UTXO) scheme. In this guide, we'll unpack how UTXOs work, why Bitcoin uses this approach, and how it differs from account-based models common on platforms like Ethereum. What is the UTXO Model? Bitcoin works differently from traditional money in banking systems. There are no fractional dollar values or account balances in Bitcoin - only unspent transaction outputs (UTXOs). The bitcoin you see in your wallet that is available for you to spend and trade  — is is actually just UTXOs.  UTXOs are the traceable units of ownership on the blockchain. When you go to make a BTC payment, your wallet combines enough of your available UTXOs to meet the transaction amount. Those UTXOs become permanently spent and new UTXOs are generated containing any leftover change, which gets credited back to y...

DeFiChain’s passionate community is defined by talented people from diverse backgrounds, all united by advancing decentralized finance.  Today, we spotlight three such contributors.  Mark, Sebastian, and Igor, the co-founders of Javsphere, have come together to create a platform that offers a simplified gateway into DeFiChain MetaChain (DMC) products for users of all skill levels. From Newcomers to Community Builders Javsphere emerged from a shared passion for furthering DeFiChain adoption among its founders - Mark, Sebastian, and Igor.  Mark entered crypto in 2017 amidst growing curiosity and shifted from his long-standing corporate career to focus on DeFiChain education and growth.  Known for spearheading the popular DeFiChain News Show and fireside chats, he became an influential voice in the ecosystem. As newcomers asked Mark for crypto guidance, he began to recognize obstacles in the user experience journey. This led to the forming of Javsphere — a way to remove...