Homework on UTXO vs Account Model

The account model doesn’t require much space as the UTXO model, why is that a benefit?
In every network transfers smaller data size is a benefit. More transactions can be stored using same space.

How is the account model not as great as the UTXO model for privacy?
All the accounts have a balance value and the balance changes with transactions (one input one output, no combining transactions).

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  1. Because Ethereum’s nodes hold so much data (including smart contracts and smart contract states) it is necessary to try and save space where possible in order to prevent the Ethereum network from being overloaded.
  2. The account model allows tracking of all transactions to and from accounts. This means that the whole history of transactions conducted by an account and movements in balance is easily available to see. This is not true for the UTXO model which allows for sending money to the sending address without that being identified as such as part of the transaction. Thus reconstructing the actual account balance and changes in the same can be difficult.
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  1. The account model doesn’t require much space as the UTXO model, why is that a benefit? Because this is easy to express in code and text, and simpler do.
  2. How is the account model not as great as the UTXO model for privacy? Because account are just update and at a coin by coin level they cannot be distinguished (all ether are the same) where bitcoin utxo can be follow individually are more private and transaction cannot be routed to other wallets.
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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?
    First, blocks can include more transactions per block, and secondly, it is faster b/c it is not tracking and storing UTXOs.

  2. How is the account model not as great as the UTXO model for privacy?
    It is easier to know where the money comes from and where one sends money to. This results in a bit less security.

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  1. Faster and more efficient transactions, easier understanding of balance.
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  1. Faster and more efficient transactions, easier understanding of balance.

  2. With Ethereum’s transparency you can see who transacted with whom and know exactly how much was send in a transaction, with UTXO you can track all transactions, but multiple transactions can be send through one transaction without knowing the transaction amount was that send to which address or to whom the addresses belongs.

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1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
does take up as much space and increasing speed
2. How is the account model not as great as the UTXO model for privacy?
account model you can trace where it was sent from or to and UTXO model will have multiple addresses it being sent out to

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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?

-Less space means lower transaction fees per byte
-Faster processing of transactions/less congestion/increases scalability.

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

On Ethereum transactions and balances can be traced to accounts. You also can’t send balances to yourself secretly so no dummy transactions possible. With UTXO you can do multiple transactions together hiding true recipients of transactions.

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  1. A benefit is the transactions take less space.
  2. It’s less private because each account is connected to the full amount of Ether instead of a sum of all the UTXOs.
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  1. Smaller block means more transactions and less fees
  2. You can trace all history of UTXOs but in Ethereum you can see only individual transactions
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  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    UTXO model can have more than one input and more than one output. This generates more lines of transactions in a block. This requires more space as compared to account model. Account model just simply deducts or adds value from your account.

Either 3+1 = 4Balance OR 3-1 = 2Balance

  1. How is the account model not as great as the UTXO model for privacy?
    Account balance shows that substracting (sending) of a balance is coming from a certain account and towards a another identified account. However, for UTXOs, you could not know for sure which transaction is a UTXO to a receiver. Or Which transaction returns back to the sender. You can only guess.
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UTXO vs Account Model Answers

  1. Since there is no notion of UTXO on the Ethereum network, ETH simply says move funds from account A to account B and updates those numbers in the database (blockchain). This saving of space makes for more efficiency and faster TX time as well as increasing the fungibility of ETH.

  2. Because you can see which TX went to which account, on a TX level on the Ethereum network. While in Bitcoin any unspent UTXO is sent to a “change” wallet where from the outside it’s impossible to know for certain which of the inputs those UTXO were sent to, was the sender or new individual.

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  • The account model doesn’t require much space as the UTXO model, why is that a benefit?
    Smaller block size as only switching numbers between accounts vs having numerous UTXO’s to process in Bitcoin.

  • How is the account model not as great as the UTXO model for privacy?
    One account vs possibly many UTXO’s. Only have to track one account vs trying to track possibly numerous UTXO’s around the Bitcoin network.

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  1. It will save the memory space and make faster transaction.

  2. In the UTOX model, outsiders cannot figure out the anonym transaction adresses. However, it’s possible to track the adress in the account model.

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  • The account model doesn’t require much space as the UTXO model, why is that a benefit?
    Transactions in the account model only has origin and destination addresses as well as the amount involved in the transaction, not all the UTXO needed to meet the balance. This saves a lot of space making the whole chain more efficient and resource and time saver.

  • How is the account model not as great as the UTXO model for privacy?
    It increases fungibility of the coins and they get indistinguishable from one to another. With theUTXO model you can trace back a coin back to the miner who created it.

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

Because there is less to process so processing speed increases.

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

Because the accounts are just debited and credited so who money is sent to and sent from can be seen.

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  1. less transaction size, less transaction fees, quicker transactions
  2. in the account model you can’t have several outputs, so when you send a payment to a person, you will send the direct amount to one person and there isn’t a part that might be sent back to you or to someone else; this makes it very traceable what when where by whom
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The account model doesn’t require much space as the UTXO model, why is that a benefit?
Allows for more space for transactions and smart contracts
How is the account model not as great as the UTXO model for privacy?
transactions are tracked address to address, exact amounts to specific a address visible on the blockchain

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

  • It makes the transactions smaller, it means we can accommodate more transactions into one block, and thus making the maximum transaction throughput bigger.

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

  • Ethereum is not really designed for generating one address for each incoming transaction, so all of the funds and transactions are connected with the one address, allowing everybody to see the whole history of that person.
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The account model doesn’t require much space as the UTXO model, why is that a benefit?
Because the the block size does not need to be as big, or even better, more transactions fit in the same block size.

How is the account model not as great as the UTXO model for privacy?
Because your “balance” always stays in the same place. So at all times it is visible which transactions were received and which were sent. In comparison to BTC’s UTXO model, which always moves 100% of the available “balance”, you can never be sure which portion of that was kept by the sender since it always ends up in a new wallet.

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