Nervos Announced a new partnership with IOHK that will surely help them collaborate better with the Cardano community. The new collaboration focuses on smart contracts, and Nervos claims it will affect the safety of them. The two teams will initially work on research around UTXO ledgers and then scaling the Ethereum’s account model.
More Secure Smart Contracts
Smart contracts are vital parts of the DeFi industry. They manage the flow of data and transactions automatically. Supporting blockchains need secure structures to let these contracts work automatically and manage users’ assets. Nervos focuses on solving common blockchain issues has partnered with IOHK to improve the security of smart contracts – especially in UTXO-based blockchains.
UTXO model, the topic of a partnership between Nervos and IOHK, is an accounting model for keeping the users’ assets, safe. It is similar to the account model in Ethereum but has significant differences that mainly affect the security of smart contracts. The partnership is focused on researching on and improving the UTXO model to expand its adoption. The final result will surely help the Cardano community, too. Romain Pellerin, Chief Technical Officer at IOHK, said:
“The Cardano and Nervos communities are working on similar research streams to offer robust smart contract technologies, native token standards, cross-chain asset transfers, and novel crypto primitives. It may be surprising to see PoW and PoS initiatives join forces, but we believe that our industry must collaborate more if we want blockchain technologies to be adopted widely.”
UTXO is somehow different in calculating the transaction. The name stands for Unspent Transaction Output that calculates the balance of the user’s digital assets after sending a transaction. Nervos claims it is more efficient than the model used in the Ethereum network. After all, it makes it easier to authenticate transaction sequences, prevent double spending, and maintain overall security.
Nervos is trying too hard to make UTXO a more adopted model in blockchains, and their recent partnership with IOHK is a very strategic move toward that goal. Kevin Wang, the co-founder at Nervos, said:
“UTXOs are superior to account models in many ways and provide improved security, privacy, and scalability, all of which are critical for DeFi. By working with IOHK to further develop and define UTXO standards, we’ll continue to provide a secure alternative for the broader blockchain industry.”
As mentioned before, research is the most important part of the collaboration between Nervos and IOHK. They will co-author research papers on UTXO to create a universal standard for that. They will also form a UTXO alliance with the help of other UTXO-based blockchains.
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