How Does Cardano Handle Smart Contract Execution?

Cardano uses the Extended UTXO (eUTXO) model, which differs from Ethereum’s account-based system. This model improves security and scalability by enabling more predictable transaction execution, reducing congestion issues. Plutus, Cardano’s smart contract platform, offers advanced programming capabilities while ensuring compliance with formal verification methods. As more developers adopt Cardano’s smart contract features, the ADA price may reflect its growing use in decentralized applications (copyright).