Homework on UTXO vs Account Model

Ethereum 101
#2046

1.it makes for more space on the block and faster processing of transactions,tokens are fungible unlike the history of utxo
2.utxo is better somewhat for privacy,

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#2047

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?
  2. How is the account model not as great as the UTXO model for privacy?
    1- It is, in a way, simpler, it does not have inputs and outputs that need to be tracked to get tracked by a wallet to get the balance, it just updates numbers in a database.
    2- Since accounts are updated within the Blockchain, addresses and balances can be known by external beholders. imagen :slight_smile: On the other side, it adds a layer of fungibility that Btc does not possess.
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#2048

Tx are made smaller and smaller tx with less byte mean less fees.

yea can very easy track where the money from and wheer u send it. in a UTXO model it is harder to tell what money went where cause u can for example program some money back to yourself

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#2049
  1. Account Model doesn’t require much space because doesn’t store all the data of input and output of UTXO. The benefit is that we save more space into blocks inserting more transactions in each block.

2.On Ethereum blockchain the transactions doesn’t have any input and output, is just moving funds between Accounts and getting the update balance.
We have less privacy because from outside everyone can see on the blockchain how much funds you sent to which address.

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#2050
  1. it allows more space for other transactions and contracts content
  2. cannot hide the amount received by the recipient.
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#2051

@EdwardSantos
you can do it by creating smart contract.

#2052
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    More transaction can fit in block, instructions are more readable.
  2. How is the account model not as great as the UTXO model for privacy?
    There is transparency in transactions showing who sent to whom, account to account basis. In BTC transaction you can send BTC to yourself and everybody can just guess if an address in output was yours.
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#2053
  1. Fit more transactions in a block and increases speed.
  2. Because each transaction is in the open and there is no “Change” that gets send back to yourself, so transactions from you to a specific destination can all be seen.
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#2054

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

It is a benefit because it decreases the amount of data needed to be processed in the blockchain.

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

The account model tracks what each account does and keeps a balance, so it can be looked up who sent you money and who you sent it to; while in the UTXO model, this information can be scrambled as it is possible to send money to others and oneself in one transaction.

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#2055

  1. This is a benefit at it doesn’t take up as much memory or code. Overuse of energy could cause potential issues as a crypto scales.

  2. The account model is not as great in terms of privacy because you don’t have the ability to send money back to yourself when sending it to someone else. BTC allows this which makes it nearly impossible to figure out exactly what address that the BTC was sent to belongs to.

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#2056

Homework on UTXO vs Account Model - Questions
Q1: The account model doesn’t require much space as the UTXO model, why is that a benefit?
A1: It’s less complicated to express in code and simplifies transactions by only changes the amounts of money each party has and which account sent/received what amount.

Q2: How is the account model not as great as the UTXO model for privacy?
A2: There are no individual UTXOs like Bitcoin in Etheruem so the lineage of all currency in the transactions is not traceable. The account model also only tracks that an amount of currency was sent from one account to the other by updating the balances of each account. In that way, it is easy to see which accounts belong to whom and impossible to track the lineage of the actual currency that has been transferred.

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#2057

  1. The account model doesn’t require much space as the UTXO model. More transactions can be stores in less amount of memory, this increases the scalability of the blockchain.

  2. In Bitcoin transactions are less transparent because there is mostly some amount of each tx going to the recipient and some amount back to yourself. from the outside, it is not clear which is which. At Ethereum with the account model, it is always exact amounts that leave and arrive in wallets. More transparent from the outside.

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#2058
  1. Less storage is required so the network can handle more transactions and they can be faster.
  2. Because in the account model all coins are equal: the movement of a coin cannot be traced from the miner to its last destination as it occurs with Bitcoin
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#2059
  1. it’s takes less space in blockchain so can be more tx in it
  2. it’s have just one recipent while utxo can have many(easier to track tx)
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#2060

The account model will allow for increased storage such as more transactions to be complete in one block and less time needed to wait for confirmations.

The account model is not as great as the UTXO model because you have less privacy due to the fact the it updates the balance which is easier to track rather than bitcoin taking the sum of several UTXO’s. You can follow the UTXO’s but it is difficult to confirm where the outputs went because you will have several outputs.

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#2061
  1. With less space provided by the absence of UTXOs, blocks are able to process faster and hold more transactions. This allows for faster transaction times and lower fees. With less space required, more people are able to participate in being a node or miner as well, as there are less hardware requirements.
  2. With UTXOs, you are able to better cloak your transactions through multiple outputs. This is impossible with ETH as transactions go directly from one account to another.
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#2062

  • The account model doesn’t require much space as the UTXO model, why is that a benefit?
    It makes for a simpler smaller transaction flow. That should translate to more speed, more volume at less energy, less cost.

  • How is the account model not as great as the UTXO model for privacy?
    UTXOs are traceable all the way back to the miner. But the owner(s) of a flow of UTXOs is not so easy to trace. An account model keeps track of each account and the transactions to and from. Therefore your account balance is known at all times.

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#2063

Smaller txs means you can put more in a block.
you can send payment to your address and someone else’s to make it more hard to trace.

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#2064
  1. Each block can carry more transactions so more transactions are processed faster.

2 The Etherium acc model is more transparent for who the recipient was , as opposed to the UTXO you cannot tell what UTXO composed the payment.

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#2065
  1. The account model uses less space on the blockchain than the UTXO model. This is an advantage because space is at a premium on the chain. Ethereum allows for smart contracts on the blockchain which take up space on the chain, it also should reduce tx time and tx fees.
  2. UTXO model allows for a a bit more privacy than the Account model. UTXO model allows the sender to send to multiple recipients in the same tx which would “mask” to a certain extent who the actual desire recipient may have been. Whereas the Account model is much more direct, ei. debit account A by 1 ETH and credit account B by 1 ETH. It is much easier to follow transactions on the Ethereum chain. You can see where all the ETH in your wallet came from of the blockchain, and one is not able to send ETH to oneself in the same tx to try and “mask” the recipient.
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