Ethereum co-founder Vitalik Buterin said he is reviewing UTXO-style concepts in a next-generation scaling architecture, prompting Cardano founder Charles Hoskinson (찰스 호스킨슨) to show public discomfort. That is because Ethereum’s new design direction touches on the EUTXO structure that Cardano has long adopted.

On Aug. 18 local time, blockchain outlet Decrypt reported that Hoskinson posted a GIF of himself covering his face and then laughing in response to Buterin’s remarks after related coverage.

The dispute starts with Ethereum’s next-generation scaling architecture. Buterin explained that Ethereum is reviewing an approach that combines UTXO-style state and dynamic state with its existing account-based model in the scaling process ahead. He particularly described concepts such as Utreexo as ideas first pioneered by Bitcoin developers.

Ethereum currently uses an account-based model. Bitcoin, in contrast, processes transactions based on the UTXO (Unspent Transaction Output) model. In the UTXO approach, unused transaction outputs are each managed like a single unit of assets.

Cardano adopted the EUTXO (Extended UTXO) model, which extends Bitcoin’s UTXO structure for a smart-contract environment. In the Cardano camp, some argue that Ethereum’s move to embrace UTXO characteristics while keeping its account model is similar to a design direction they have pursued for a long time.

Hoskinson has also pointed to this issue before. He criticised Ethereum developers in July after the Ethereum Foundation released a research proposal reviewing a native UTXO-style payment design. He argued then that Ethereum was moving in a direction similar to Cardano’s EUTXO while not sufficiently recognising Cardano’s accumulated research and development achievements.

Similar reactions continued in the Cardano community. Some users interpreted Buterin’s remarks as indirect recognition of the advantages of UTXO-based design. They argue that a UTXO-style structure could help improve blockchain scalability while maintaining decentralisation and accessibility for running nodes.

Lily Brody (릴리 브로디), an Algorand Foundation ambassador, also joined the dispute. He highlighted similarities in design approaches between the two blockchains, saying in effect that what Ethereum is reviewing is “literally Cardano.”

Still, UTXO and EUTXO are not identical to the technology Ethereum is seeking to adopt as is. Bitcoin’s UTXO model and Cardano’s EUTXO differ in how they handle transactions and smart-contract execution, and Ethereum is also reviewing a direction that combines some UTXO characteristics rather than fully abandoning its existing account model.

For this reason, the dispute can be seen not only as a war of nerves in the blockchain industry but also as design competition over how each network will secure next-generation scalability. Bitcoin grew based on the UTXO transaction model, and Cardano developed it into the EUTXO structure to apply it to a smart-contract environment. Ethereum, by contrast, has expanded its smart-contract and decentralised application ecosystem through an account-based model.

How actively Ethereum will apply UTXO-style elements to the actual protocol in the future remains to be seen. The dispute is also again highlighting conflict over who recognises, and how, each project’s accumulated design philosophy and technical contributions.

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