How to Understand Transactions in Transaction

Cardano allows you to send multiple assets to multiple recipients in a single transaction. The somewhat inappropriate term ‘transactions in transaction’ is sometimes used for this feature. 

Let's explain how transactions in the network that uses the UTxO accounting model differ from transactions in the network that uses the account-based model. You will also learn why the TPS metric is not suitable for Cardano, but it is fine to use it for Ethereum. 

The Impact of the Accounting Model on Transactions and Scalability Cardano uses a UTxO (unspent transaction output) accounting model. UTxO represents a certain amount and type of asset. 

Each transaction consumes some UTxOs from previous transactions (UTxOs are the input of the transaction) and creates new UTxOs that can be used as in Read article: How to Understand Transactions in Transaction