Homework on UTXO vs Account Model

  1. More space in blocks allow for more/ faster/ cheaper transactions on the blockchain. Especially since the Ethereum blockchain verifies more than just simple transactions than Bitcoin, space is valuable.
  2. The account model lacks the ambiguity of the UTXO model, when looking at transactions on the blockchain. With the UTXO model, there is that one level of uncertainty, not knowing if a change account belonged to the sender, or if it was to a third party.
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  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    Because it makes ether more fungible( interchangeable)

  2. How is the account model not as great as the UTXO model for privacy?
    Because people can directly look at how much and where you spent and send your money , there are no UTXOs

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  1. It is space saving so its always more space for transaction in less time
  2. Eth is fungible and has less privacy. UTXO con send 1 transaction to multiple adresses and yourself making it harder to trace and identify. Where account simply sends from one account to another.
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  1. The account model does not have UTXOs in it, that makes transactions smaller in terms of size and it’s a benefit because more transactions can be added into a block, this also improves time of transactions and reduces fees ( smaller tx = smaller fee )

  2. Account model is lacking a little bit on privacy for the following reasons:
    While in BTC you can send money also to your self but transactions are being propagated to the network as UTXOs, it is unfeasible to tell which address is the actual recipient and which one is yours, this makes it more private. In ETH there is no UTXO model and so your balance gets updated on each transaction, also you can’t send money to your self at the same time as when you are sending to someone else, this makes it easier to track and visually follow.

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  1. It’s reducing the block size.
  2. In account model you can’t send money back to your other account.
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1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
Because it can handle more transactions in the same amount of space (block), then, ceteris paribus, the fees should be lower.
2. How is the account model not as great as the UTXO model for privacy?
Ethereum blockchain doesn’t handle UTXOs, so Ethereum destination addresses are the ones specified in the transaction. With Bitcoin, the unspent amount of Bitcoin is sent to a new address that is impossible to know if it belongs to the sender or receptor unless that UTXO is spent.

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You can fit in more txs into a block.

You cannot trace coins since there are no UTXOs.

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  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
  • It reduces the block size.
  1. How is the account model not as great as the UTXO model for privacy?
  • You can not send anything back to the same address within the same transaction.
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  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    Smaller fees, small space

  2. How is the account model not as great as the UTXO model for privacy?
    bc account balances are public, everyone can see the txs

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  1. It is a benefit to have an account model because it can take up less space on the blockchain by not needing to track which UTXOs (of “coins”) are needed to group together to complete a transaction. This allows more nodes with lesser computing power to be a part of the network this making it more decentralized and secure.
  2. The account model identifies both the sending and receiving address for each transaction, whereas in the UTXO model, UTXOs can be sent back to yourself and so there is no way to tell how much exactly was interchanged between parties in any given transaction.
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  1. Smaller block size and fees.
  2. The account model is not as great as the UTXO model for privacy because there are no outputs. Each transaction can be seen from the outside, how much was sent and to whom.
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1) The account model does not require much space as the UTXO model, why is that a benefit?

The account model requiring less space means smart contract code is easier to express, transactions easier to verify, and more transactions can be added to an Ethereum block.

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

The account model does not allow you to send funds to a recipient and yourself simultaneously compared to the UTXO model. In Ethereum, due to the account model’s simplicity, you can easily verify funds from one account to another account.

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  1. Because it allows for faster transactions
  2. because you can trace back to the account
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  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    Smaller transactions mean smaller fees (per byte). Blockchain node file grows slower
  2. How is the account model not as great as the UTXO model for privacy?
    Here, one cannot also obfuscate transactions. You can see exactly how much money you send, and to which address. The transaction is either to your address or somebody else’ address. There is no way to send all output to somebody else’ address, and your address as well
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1 - That is a benefit because doing that the blocks can contain more data, whether it is formed by transactions or by smart contract instruction.

2 - Because in the account model the transactions are fungible.

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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?
    simplicity and efficiency
  2. How is the account model not as great as the UTXO model for privacy?
    it has public nonce and has a double spend drawback
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  1. More TX possible in a same amount of time

  2. With UTXOs it’s harder to identify who are involved in the TX.

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  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    It is a benefit because blocks can hold more transactions. This means faster transactions and because there is less space requiered the space can used more efficiently. Like use it for smart contracts.

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

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  1. That way, we don’t need to calculate all UTXOs to find out account balance and for how much can we spend. It is quicker, easier to express.

  2. Because, in Account Model, one can see clearly in which account the money is going from which account.

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  1. Smaller is faster is more responsive.
  2. I’m not sure how that part works. When you spend a UTXO (transaction A), the “change” is made into another UTXO back to you (transaction B) - but I’m note sure how that protects the identity of either side? Transaction A must still show on the blockchain?
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