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Dev Release 68

July 5, 2024

Greetings BlockDAG Community,

Let's end this week with a quick recap and the latest updates of today.
We started the week by addressing queries from Apple regarding our latest build. We provided detailed explanations to clarify their doubts and submitted the latest build for review. Currently, we are waiting for their response as the application remains in the review state.
Blockchain Explorer Development: In parallel with addressing Apple’s queries, we made significant progress on the blockchain explorer. This week, we successfully developed and deployed the faucet page on our server. Following this deployment, we shifted our focus to testing the entire platform to ensure its robustness and reliability.
UTXO vs. Account-Based Models: Today, we want to delve into an essential concept that we have been researching: UTXO (Unspent Transaction Output) and account-based models in blockchain technology. This research has reached its conclusion, and we are excited to share the outcomes with you.

BlockDAG Chain Supporting Both UTXO and Account-Based Addresses

Following back on our research of UTXO based modals and account based modals, today, we are would like to update the community that we're supporting the integration of both UTXO (Unspent Transaction Output) and account-based address models. This dual support enhances the versatility, security, and efficiency of our network, accommodating a wider range of applications and use cases.
Let's dig into the review of working of both the modals.
Understanding UTXO and Account-Based Models

UTXO Model:

  • Definition: In the UTXO model, transactions are composed of inputs (which reference previous outputs) and new outputs. Each output can be spent as an input in a future transaction.
  • Advantages: Provides high security and allows easy parallel transaction processing. It is the model used by Bitcoin.

Account-Based Model:

  • Definition: In the account-based model, each account has a balance that is updated directly with each transaction. This model is used by Ethereum.
  • Advantages: Simplifies transaction logic and enables smart contract functionality.

Integrating UTXO and Account-Based Models in BlockDAG

Our development team has successfully integrated support for both models within the BlockDAG framework. Here’s how it works:
1. Transaction Processing:
For UTXO-Based Transactions:
function processUTXOTransaction(transaction):
 totalInput = 0
 totalOutput = 0
 for input in transaction.inputs:
 totalInput += fetchUTXO(input).value
 for output in transaction.outputs:
 totalOutput += output.value
 if totalInput >= totalOutput:
 for input in transaction.inputs:
 for output in transaction.outputs:
 return True
 return False

For Account-Based Transactions:
function processAccountTransaction(transaction):
 sender = fetchAccount(transaction.sender)
 receiver = fetchAccount(transaction.receiver)
 if sender.balance >= transaction.amount:
 sender.balance -= transaction.amount
 receiver.balance += transaction.amount
 return True
 return False

2. Transaction Validation:
For UTXO-Based Transactions:
function validateUTXOTransaction(transaction):
 for input in transaction.inputs:
 if not isUTXOValid(input):
 return False
 return True

For Account-Based Transactions:
function validateAccountTransaction(transaction):
 sender = fetchAccount(transaction.sender)
 if sender.balance >= transaction.amount and transaction.signature is valid:
 return True
 return False

Advantages of Dual Model Support

Now let's understand why we have decided to give the support of both the modals in our system.
Advantages of Dual Model Support

  • Flexibility: By supporting both models, our BlockDAG blockchain can cater to a wider range of applications, from simple payments to complex smart contracts.
  • Security: The UTXO model provides inherent security benefits by enabling precise control over transaction inputs and outputs, making it harder for malicious actors to manipulate balances.
  • Efficiency: The account-based model simplifies transaction processing and reduces computational overhead, which is beneficial for high-frequency transactions and smart contract execution.
  • Scalability: The combination of both models allows for parallel transaction processing, enhancing the scalability of the BlockDAG network.

Mathematical Formulations
UTXO Model:
∑Inputs=∑Outputs+Transaction Fee
Account-Based Model:
Sender Balancenew​=Sender Balanceold​−Transaction Amount
Receiver Balancenew​=Receiver Balanceold​+Transaction Amount

Implementation Details
Data Structures:
 id: string,
 value: float,
 owner: string,
 spent: boolean
For Account:
Account {
 address: string,
 balance: float,
 nonce: int,
 codeHash: string

Consensus Mechanism Integration

To ensure seamless integration, our consensus mechanism has been updated to handle both UTXO and account-based transactions. This includes validating transaction types, updating state changes, and maintaining consistency across the DAG structure. We are excited about the potential of supporting both UTXO and account-based models and look forward to seeing the innovative applications our community will build.

Stay tuned for more updates and join us in this exciting journey.

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