Homework on UTXO vs Account Model

Ethereum 101
#2206

  1. Any space savings will benefit transaction speeds and will allow more nodes to be able to participate, thus making security better.

  2. UTXO’s combine all transactions whereas Ethereum does not.

1 Like
#2207
  1. taking less space is usually good, in this case it makes more nodes function as full nodes
  2. the account model has accounts you can map to individuals and you cannot send to two address in one trasaction which in the UTXO model makes it harder to see who is sending money to others vs themselves, but with UTXOs the coins are not as fungible, so a coin with a criminal history may be blacklisted, etc.
1 Like
#2208

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?
    Account Model deal with updates in the database, and therefore Tx takes up less space than BitCoin that uses UTXOs input and output Tx tracing. Account model is a bit more fungible. Ex., It about balance update that does not distinguish between coins.
  2. How is the account model not as great as the UTXO model for privacy?
    With the Account model there is a balance- no UTXOs. With UTXOs, there is no number telling you what you balance is. It’s difficult to tell which output goes to the recipient or what goes back to you with respect to addressing.
1 Like
#2209
  1. Any space savings is a benefit. As the network full nodes are meant to be operated by individuals rather then data centers the lower the data requirements the more potential participants.
  2. You can’t send funds to your self and funds go from 1 account to other account. It’s easier to visually follow.
1 Like
#2210
  • The account model doesn’t require much space as the UTXO model, why is that a benefit?

It is a simpler process to manage and taking less space and being simpler would make it more efficient with respect to time and energy needed to confirm transactions.

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

Moving funds are direct, single transactions making it very easy for outsiders to be able to see precisely how funds were moved and what is left.

1 Like
#2211
  1. It is a benefit that the account model requires less space than the UTXO model because it allows for more transactions to fit in each block. This reduces transaction time, requires less energy - reducing transaction fees, and creates a more fluid system in general, capable of greater complexity.
  2. The account model is less private than the UTXO model because each transaction is only one input and one output, or a simple transfer between two accounts. Anyone can trace how much Eth has been transferred to whom. In Bitcoin’s model, a transaction can be made up of multiple inputs and multiple outputs, making the actual transfer of funds much more ambiguous and complicated to trace.
1 Like
#2212
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
  • Because the account’s state and transactions are smaller, it is much faster to get new nodes online in a system running the account model because less data is needed to get them in synch. The number of accounts will generally be much smaller than the total UTXO set in a comparably sized system.
  1. How is the account model not as great as the UTXO model for privacy?
  • The account model implicitly reuse the account address and makes the process of creating a transaction history much easier targeted to a single user. On the other hand, it is harder to track the ownership of coins in the UTXO model because a newly generated address doesn’t have a known owner and requires advanced chain analysis to be linked to a single user.
1 Like
#2213

  1. The account model doesn’t differentiate between the tokens once they are in the account. The UTXO model keeps into account every utxos history so the tokens traceability is higher and the tokens are in a sense unique.

  2. The account model identifies the account holder from and to which the tokens travel, the UTXO simply has addresses that could be owned by the same person or separate. The account model is every account is identified with its activity and hence more traceable as an account but the tokens are not unique

1 Like
#2214
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?

More transactions can be stored in less amount of memory

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

The account model is not as good for keeping transactions private because it’s simply a transfer from one account to another.

the UTXO model can combine transactions so that one transaction sends funds to multiple parties at the same time.

1 Like
#2215
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit? - It makes the coin more private and thus more fungible
  2. How is the account model not as great as the UTXO model for privacy? - Coins can not be traced and as easily so you may not know if your coins are “clean”.
1 Like
#2216

Less Space means more storage capacity as block size can be smaller and transaction fees can be lower.

There is less privacy - anyone can see exactly how much money was sent to one specific address - as opposed to the BTC model with multiple inputs and outputs, the latter can go to many addresses and even be used to “disguise” your intentions with dummy transactions.

1 Like
#2217
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    Makes the tx take up less space, making it faster.
  2. How is the account model not as great as the UTXO model for privacy?
    With account model all inputs and outputs of a wallet can be seen easily
1 Like
#2218

  1. Big data storage space, required to run a node, puts a lot of pressure on individuals. That leads to more centralization, as nodes migrate to data centers. Less data also allows faster transactions and less energy spent.

  2. Account model only sends money from one account to another, so source and target are easily identifiable. In utxo model, i can send money to more accounts, including myself. Ownership of accounts can’t be identified, so all of the output accounts could be mine or none of them.

1 Like
#2219

Ethereum uses fungible Account model and you cannot distinguish between individual coins – meaning that 1 ETH is always 1 ETH and transactions will record on blockchain as TX and you can see which account sent you coins, but you cant see which individual coin represents individual transactions and the sums of ETH are added up.

With BTC with have the UTXO and it shows the entire history of all the coins and it’s very transparent, but also more private, but you can also track each bitcoin if you go back to it’s creation by the miner and follow all moves.

1 Like
#2220

1.account model does no save all UTXO’s, he shows only balance of your account TX.
2. With account model, you can track the transaction and you see the balance. In the UTXO is harder to track transactions and there is no balance. Just UTXO.

1 Like
#2221

  1. Account model reduces space because it only keeps track of a balance not all the transactions for the balance.

  2. Account model doesn’t show history of where the money comes from.

1 Like
#2222

Homework on UTXO vs Account Model - Questions

The account model doesn’t require much space as the UTXO model, why is that a benefit? Smaller transactions, means faster transaction and less to mine. Efficency

How is the account model not as great as the UTXO model for privacy? In the UTXO model you have the ability to send money back to yourself and others wouldn’t be able to tell creating privacy. This is not possible in the Ethereum Account Model.

1 Like
#2223

  1. Bc the less data increases the speed of the transactions making it more usable allowing more nodes to enter network.

  2. Account model is fungible and others can more easily see direct transactions between parties bc the information in the transactions is not obscured by the many possible outputs of a UTXO. .

1 Like
#2224
  1. Less fee’s easier to track.
  2. The account model show exactly where funds are coming from and going to.
1 Like
#2225
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    Because it leads to higher efficiency, since nodes can verify transactions faster.
  2. How is the account model not as great as the UTXO model for privacy?
    Since the account model simply updates the balances of accounts it is easier to identify from where to where a transaction was sent. The UTXOs model, however, uses a complex constellation of outputs and inputs, which can be send to another address or to yourself, both indistinguishable.
1 Like