Homework on UTXO vs Account Model

Ethereum 101
#1985
  1. Because we have more space for more transactions, because each tx is smaller in size.
  2. In the UTXO model transactions work a bit different. We could send coins to someone and back to ourselves at the same time, in the same transaction. A person would never know which address is ours or which address is someone else’s. That isn’t possible in the account model.
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#1986
  1. It makes the possibility for nodes to process transactions faster, store more of them which can also lead overall to a better efficiency of the network and lower fees.
  2. In the account model it is very easy and clear to see where is the money coming from. In the utxo’s model, a transaction can have a bunch of ouput of which some might be going back to the senders adress so it is difficult to see what was really the intent of the transaction.
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#1987
  1. The blockchain node file size would grow much slower and smaller transactions mean smaller fees.
  2. The account model just updates everyone’s accounts involved in a transaction accordingly, so you can’t hide the recipient by paying yourself. Everyone can see exactly how much was sent and to which address.
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#1988

  1. More space=more transactions/smart contracts on the block

  2. You can see who sends eth to who. While in Bitcoin, you always have the option to send money back to yourself and make it unclear where the money goes.

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#1989

1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
More transactions can fit in a block, transactions require less space increasing efficiency
2. How is the account model not as great as the UTXO model for privacy?
In the Account model you have a balance and each transaction updates accounts, making it less private since it goes from A to B

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#1990
  1. a block can accommodate more data making the Ethereum blockchain faster with lower fees and more scalable going forward.
    2 Ethereums account model is easier to trace transactions A-B. UTXOs can have multiple outputs which makes determining the receiver very difficult.
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#1991

With less space required for transactions you can include more transactions into one block of the same size. This reduces network congestion.

In the account model the sender and recipient of a transaction and their balances are clear. With the UTXO model the outputs of a transaction usually also include a output belonging to the sender (for the change of the transaction) but it’s unclear which output it is. Bitcoin addresses (including the change address) are meant to be single-use addresses. Thus they can provide some kind of privacy.

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#1992

UTOX vs ACCOUNT MODEL

  1. The account model do not require much space as the UTXO model. The benefit that brings to Ethereum is, it gives efficiency in memory usage. Storing a single account balances saves memory compared to several UTOXs that comprise a user’s total balance. The account state and transaction are smaller and does not require large storage.Transactions will be smaller in size as they will only specify the sender, receiver, the transfer amount, and a single digital signature.

  2. The account model not as great as the UTXO model for privacy in that the UTXO model makes it harder to link transactions eg when change addresses are consequently used in the UTXOs model, it makes tracking the ownership of coins harder. Whereas the account model encourages address re-usage and hence makes creating a transaction for a single user easier and traceable.

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#1993

UTXO is Bitcoin, the bitcoin blockchain is the perfect record of each Bitcoin and it’s transactions all the way back to it’s creation (mined). This means If there is foul play with the transactions (UTXO) it can be traced, and blacklisted or Red Flagged(RF). RF Bitcoin then can be held accountable as well the unlawful users, by means of extreme cost to the RF Bitcoin Transactions. Every block/account UTXO is in UTXO that takes up much space and is complicated. And since you only see all transactions you do not know if it was a company or specific person(s) or for what use(s). Makes Bitcoin most private it is UTXO.
Account Models are more simplified, they do not account for every single transaction per ETH since being mined.ETH is not a UTXO. ETH is fungible token. Each account or smart contract keeps record of transaction(s) that it’s self has or received. A smart contract stores users own transactions from that point to keep the coins equal to it’s value. ETH you can who is sending and receiving, and update accounts, moving tokens and accounting. Faster and more fungible.

In UTXO you have all transactions going in and out, but the not user. A Bitcoin users could make transaction to themselves and you would not know that. All the UTXO is used in a transaction, change is received or sent within transactions you can not tell who, just the transactions. Account Model is a balance of transactions exact amounts are deposited and exact amounts are released, updating balances within the network of smart contracts allowed to operate on ETH platform.

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#1994

  1. Less space means more space in the blocks more space in the blockchain for transactions.

  2. It has less privacy due to the fact that you can trace where the tx is going to.

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#1995

1.It’s a benefit for the account model to not require as much space as the UTXOs model because it provides less traceability and neutrality as a coin.
2.However, the account model’s user is exposed to reveal the amount of value at his dispense.

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#1996

  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    Less space is simpler to code, lees process on the BC, computes faster

  2. How is the account model not as great as the UTXO model for privacy?
    Each transaction just makes updates to the accounts. It doesn’t have inputs and outputs… But from the outside one can see exactly how much money was sent or received.

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#1997
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit? More transactions can be put into a block.
  2. How is the account model not as great as the UTXO model for privacy? In the UTXO model, transactions can have multiple outputs, one of which could be you. In this scenario it’s more difficult for the general public to know what went where. In the Account model agency is much more directly visible.
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#1998
  1. Its a benefit because it makes it possible to fit more data on the blockchain therefore making it faster and more efficient.
  2. Becasue on Ethereum you can send exact amounts, which makes it unnecessary to send utxos to back yourself.
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#1999

  • The account model doesn’t require much space as the UTXO model, why is that a benefit? an input and output wallet with non fungibility. authorized by individuals rather then data centers, potental to devalue if black listed.

  • How is the account model not as great as the UTXO model for privacy~ The ability to trace each Bitcoin’s transactions all the way back to when it was first mined, and then with ETH security lacks because you can only see the balance increased or decreased.

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#2000

It makes the network faster and uses less size and computational power and storage.

It is a simpler model and transactions are clear on the blockchain. You receive money from someone and you send money to someone, you can’t really hide this.

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#2001

  • The account model doesn’t require much space as the UTXO model, why is that a benefit?
    Faster to send information between nodes and provides a more efficient storage usage.

  • How is the account model not as great as the UTXO model for privacy?
    UTXO makes it harder to link transactions, tracking ownership of coins. Account Model allows the creation of a transaction history for the user easier, but is fungible.

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#2002

Homework on UTXO vs Account Model:

  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    When operating in Ethereum’s account model we do not need to bring previous TX information as with UTXO model. This helps ETH blockchain efficiency in terms of processing speed and volume churned by Nodes.

  2. How is the account model not as great as the UTXO model for privacy?
    In account model (on ETH) we loose on Privacy front because in UTXO (BTC) model we could execute multiple payments in one transaction, this way one or two payments could be arranged going back to original source and still not be distinguished to which party it was sent.
    On ETH platform every sent payment is transparent, it is one account to another TX, and we have a clear balance for each account.

G.

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#2004

1)less space -----> more TXs added to a block and more SC -----> faster network-----> less fees -----> adoption.

2)Since the account model doesn’t keep track of the provenance of each single coin , we can not distinguish between bad coins(hacked , used in dark weeb ,…) and clean ones.
also , since there are no UTXOs, we can not send TXs back to our selfs or to a different wallet which we control in case we want to distract the stalkers of our wallets.

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#2005
  1. This allows for more transactions and smart contracts. Essentially allowing for a faster network.
  2. The account model transfers exact amounts from account to account. UTXO’s must combine inputs to derive outputs and then return leftover outputs back into the senders account all within one transaction. This allows for no way to tell for certain who received what in the bitcoin transaction. Such a format is not allowable in ethereum.
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