Pierre Rochard, Vice President of Research at Riot Platforms, highlighted the fundamental differences between Bitcoin’s and Ethereum’s transaction models, emphasizing Bitcoin’s transparency.
Bitcoin and Ethereum Transaction Model
In a recent tweet, Rochard explained that Bitcoin’s Unspent Transaction Output (UTXO) model allows users to directly authorize transactions by specifying which funds are spent and where they are sent. This makes each transaction transparent and easily verifiable. In contrast, Ethereum uses an account-based model where transactions can trigger smart contracts, conducting multiple internal operations that complicate user understanding.
Risks of Ethereum’s Complex Transactions
Rochard noted that while Ethereum’s programmability offers flexibility, it also introduces risks of hidden fund movements and unintended errors. Despite advancements like structured data signing (EIP-712), users still find it difficult to fully audit smart contract interactions before signing.
Ripple Criticism and Importance of Transparency
Rochard also refuted claims that ETH or SOL have surpassed BTC due to their advanced features, arguing that Bitcoin’s true strength lies in its simplicity. He emphasized that monetary value comes from verifiable scarcity rather than complex utility. In another tweet, he criticized Ripple for allegedly spending on lobbying against the Strategic Bitcoin Reserve initiative in favor of XRP. Ripple CEO Brad Garlinghouse stated that their efforts support the creation of a crypto reserve, including Bitcoin.
Pierre Rochard stresses the importance of transparency in cryptocurrencies, pointing out the advantages of Bitcoin’s simple and clear model over the complexity offered by Ethereum.
