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Ethereum explores UTXO-style payments to cut state size by 99.8%, inspired by Bitcoin's Utreexo project.

Protocol Fundamentals
17 Aug 2026
Blockonomi
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Neutral
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Ethereum co-founder Vitalik Buterin praised Bitcoin's Utreexo project while discussing Ethereum's scaling research, which includes a proposal to add native UTXO-style payments. This approach could reduce Ethereum's permanent state usage by about 99.8% for simple payments by keeping a lightweight marker instead of full payment records. The proposal, linked to EIP-8141 (Frame Transactions), aims to maintain Ethereum's account system while improving scalability without compromising decentralization. These ideas remain in research and may be considered for the 2027 Hegotá upgrade, with further development ongoing.

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