Homework on UTXO vs Account Model

Ethereum 101
#3621
  1. Increased Transactions Space - More Speed and efficiency.
  2. UTXO can be tracked to origins while account model is fully fungible.
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#3622

It is beneficial because one block can store more transactions and increase storage efficiency.

Because it is visible how much and to whom it was sent.

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#3623

  1. The benefit of Ethereum account model is that it can include more transactions since the transactions are not made out of all inputs and outbuts but just the final balance which takes much less space in the blocks. This reduces the size of the blocks and process faster with increased efficiency/scalability including time for the confirmation of the transactions.

  2. Ethereum account model is not as great for privacy because you can se directly to whom you are sending and what amount the final balance as you can not have several outputs in the same time in the same transaction to different recipients only one input and one output. All coins are the same, you can not distinguish each coin which makes Ethereum more fungible.

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#3624

Homework on UTXO vs Account Model - Questions

1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
The block size of the account model are smaller as they contain less data, they are simply an account record of the balance of the account without transaction records.

The UTXO model has all the transaction data in the blockchain, they do not have an account balance sheet but calculate the balance amount with the sum of UTXO to an address.

The benefit of the account model is that it is much quicker and can handle more thru-put of transactions on the network.

2. How is the account model not as great as the UTXO model for privacy?
In the account model they are single transactions that are added to a balance giving greater transparency of the transaction amounts, balances and addresses, in contrast to UTXO where transactions can be sent to multiple addresses with multiple recipients, each address amount being unknown within the total UTXO ‘withdrawal’ amount from the originating address.

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#3625

  1. The transaction size would be way smaller so that more transaction can be process in a given time.

  2. UTXO model enables people to send money to themselves therefore relatively easier to hide their identity and the amount of UTXO they are holding. While account model cannot, so who owns how much is easier to see.

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#3626

  1. It is a benefit because the challenge faced by bitcoin block size limits will not be faced on the Ethereum network. More transactions can be fitted into the blocks on the network and that can improve transaction speed.

  2. Because it is easy to know from just looking on the outside parties or accounts that were involved in a transaction on the network thus compromising privacy.

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#3627

Homework on UTXO vs Account Model - Questions

  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?

It is a benefit as it means there is more space in the block for more tx’s and smart contract code

  1. How is the account model not as great as the UTXO model for privacy?

The account model is not great for privacy as anyone can view the tx’s - it is exactly clear how much was sent to which address therefore traceability is easy - with the UTXO model, it has many inputs and outputs to each tx making the tracking process a lot more complex

Cheers :apple:

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#3628

1 Smaller blocksize = more efficient
2 It is easier to track txs since you can not make txs to yourself

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#3629
  1. Faster transactions with less computing power needed.
  2. You can see where each ETH came from since it’s a balance format. In UTXO it’s more difficult to decipher.
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#3630
  1. More space in the blocks for transactions & smart contracts.
  2. It’s harder to link transactions from UTXOs because you are sending BTC to someone else but you are also sending BTC back to you. You can’t do it with the account model because everything is visible from how much and to who it was sent to
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#3631

  1. Because it requires less blockspace in the blocks so it contributes to improve the block size issue.

  2. Account model manage each transaction sustracting value for a wallet and adding the sustracted value to another and it is shown as an only transaction. With the UTXO model the transactions may be shown as several outputs to different wallets even if one of the address is you own wallet, therefore, you can not say which transaction is the “real” one.

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#3632

The account model doesn’t require much space as the UTXO model, why is that a benefit?

Less the space requirements more the transactions can happen on the blockchain. Many dapps are running on top of Ethereum blockchain and those dapps are running many transactions. Less space is beneficial for the blockchain overall.

How is the account model not as great as the UTXO model for privacy?

In the account model, transactions are simpler, from account A to account B. There is no multiple outputs like the UTXO model where you can send something to someone and send to yourself something at the same time. Any observer of the transaction wont be able to know if you send something to yourself. So the privacy is a bit less in account model than UTXO model.

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#3633

Not needing to rely on UTXO is crucial for scalability, because Ethereum is a platform where more and more tokens are being made, some of whose primary appeal is based in the expediency that large block sizes can not accommodate.

The account model, however, sacrifices some security for speed, as you can more precisely trace the single transaction output - as opposed to the multiple UTXO output which is a tracing of the entangled transactions more than a streamlined ledger with a clear, discernable address.

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#3634
  1. The blocks can contain more transactions making the smaller and easier to transfer. It is also a simpler model.
  2. it is possible to track transactions since you can’t send money back to yourself in the same transaction that you use to send money to someone else. This makes the transaction easier to follow.
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#3635
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
  • More transactions can be accommodated in a block
  1. How is the account model not as great as the UTXO model for privacy?
  • It is easier, more straightforward to identify the movement of the funds to and from a certain address down to the exact amount of coins spent.
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#3636
  1. The account model allows for more transactions per block.
  2. The account model doesn’t allow for obfuscation where I could send bitcoin to someone and myself. In such a transaction you cannot tell which public key received which percentage of the transaction. Where in Ethereum the transfers are clear in who receives what.
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#3637
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit? It allows for more transactions and faster transactions.
  2. How is the account model not as great as the UTXO model for privacy? Because your transaction clearly shows what was sent and received rather than having multiple accounts between which you can’t distinguish.
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#3638

  • The account model doesn’t require much space as the UTXO model, why is that a benefit?
    As each transaction requires less space, each block can contain more transactions increasing speed and decreasing costs.

  • How is the account model not as great as the UTXO model for privacy?
    In the UTXO model you have the possibility to obscure transactions by sending funds to yourself as a part of multiple transactions.
    In the account model a transaction goes from one wallet to another wallet and are easily traced.

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#3639

1.less storage space is needed making for more transactions per block and each node not needed as much storage to keep the state of accounts up to date.
2.it is slightly less private as addresses can be seen where eth was sent from it cannot be disguised as it can with multiple outputs in the utxo format.

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#3640

1- Account model takes less space that means more transaction can take at the same time and user have to wait less for them.
2- Account model is very simple to track because it has one single input and output while in UTXO model their are multiple input and output in every single transaction thats why UTXO model is good for privacy in compare of account model

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