Charles Hoskinon publicly endorsed Bitcoin (BTC) and Cardano (ADA), stating that the UTXO-based design protects users against widespread crypto scams. He compared it to Ethereum, which he criticized for subjecting users to greater risk by virtue of its account-based design. These comments came after we learned of a 50 million USDT scam, where scammers took advantage of address copying behavior to defraud users.
UTXO model blocks poisoning
Hoskinson said that both Bitcoin and Cardano follow the Unspent Transaction Output (UTXO) model, in which each transaction is treated as an input and an output. This design helps keep attackers away by not allowing for easy address poisoning or transaction history replication. He was forthright in saying that Bitcoin and Cardano are not affected by address poisoning, and this supports his long-held view that UTXO systems provide better user-level security by default.
Etherium account model
Hoskinson directly criticized Ethereum’s account-based system, publicly displaying the entire address history. Scammers use this opening to send small amounts of cash in powder form to generate fake addresses that look valid. Users risk transferring money to attackers when they copy addresses into transaction histories. This structural deficiency was one of the problems that Hoskinson identified as a common problem and not a user error.
Tradeoffs that design can determine safety
This trade underscores a broader argument about blockchain design. UTXO systems are more secure and isolate transactions, while account-based systems are more flexible and composable with a smart contract. Hoskinson’s comments once again sparked a debate throughout the crypto community about whether scalability and programmability should come at the expense of greater exposure to scams.
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