Complexity in Transaction and Contract Management

The eUTxO model, compared to account-based models like Ethereum's, introduces a higher level of complexity in managing transactions and contracts. This complexity poses challenges for developers, particularly in developing and coordinating applications that require sophisticated state management. This trade-off impacts the user experience and the overall efficacy of the blockchain.

The Leviathan protocol addresses these issues by introducing Guaranteed Transactions, which are deterministic and hold exclusive rights to their inputs, enabling a chain of state changes without the constraints of the settlement ledger's throughput capacity.

Operating with Guaranteed Transactions, the protocol ensures instant finality, assuming the ledger's liveness. These transactions facilitate a chain of state changes, circumventing the throughput limitations of the settlement ledger. For instance, the outputs of the N-th transaction serve as inputs for the (N+1)-th transaction, without needing ledger confirmation for the N-th transaction. This process is known as the Leviathan Chain Extension.

To qualify a transaction as Guaranteed, the protocol must dissociate the user from the action, effectively separating the user from the transaction's deterministic nature. This separation is accomplished through an account abstraction layer, enabling transactions on the user’s behalf, evidenced by their consent (a signed message or intent). A shared sequencer network is established, which, via a consensus defined in smart contracts, creates the Transaction Chain.

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