Secure Distributed State Management in eUTxO Blockchains

UTxO blockchains extend the traditional UTxO model by enabling stateful smart contracts. However, current approaches to state management in eUTxO blockchains face significant challenges, including high costs, limited parallelism, and security vulnerabilities. We propose a novel model for sharding contract state across multiple UTxOs, ensuring secure and cost-effective state propagation. Our mechanism is fully general and allows eUTxO platforms to maintain a smart contract’s state securely, preventing tampering while leveraging the ledger’s distributed nature to support independent and parallel updates. We evaluate the performance benefits of the new mechanism and explore its potential as a foundation for developing robust smart contracts for stateful validation logic in eUTxO smart contracts.