Migration from an accounts-based model to a UTXO model for Validator Nodes #4
Description
Issue:
The current validator node implementation uses an accounts-based model to validate transactions. A shift to the UTXO model may allow for more sophisticated transactions to take place and outsource the tracking of user balances to the users themselves. The multi-signature verification script will allow for improved security over the existing model and may open the potential for smart-contracts.
Solution:
Consider using a UTXO model for transactions instead of account-based model for enhanced security and flexibility.
Alternatives Considered:
N/A
Additional Context:
- The new UTXO model will outsource the tracking of user balances from the validator nodes to the user wallets.
- The new model would enhance security by using a multi-signature script to verify the transactions
- The new multi-signature script may open the opportunity for a future upgrade implementing smart-contracts
- Fraudulent transactions may be able to be caught early-on as the UTXO's to be redeemed are predetermined.