Homework on UTXO vs Account Model

Ethereum 101
#2266

Homework on UTXO vs Account Model - Questions

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

The benefit is the blocks can include more transactions

Less space = more transactions can be done at the same time = better efficiency.

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

The Account model

Simply a transfer from one account to another. Anyone can view the amounts and destinations for all transactions.

UTXO model

Combines transactions so that one transaction sends funds to multiple parties at the same time.

I.E You can send funds to friend A, friend B, friend C and yourself all at the same time.

Its possible to see that 4 transactions were outputted, but it’s harder to determine the transaction amount that was sent to which address or to whom the addresses belongs.

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#2267

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

  2. How is the account model not as great as the UTXO model for privacy?
    Less private, each transaction can be traced

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#2268

Answers to Homework on UTXO vs Account Model

  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    The TX can therefore be done with more speed.

  2. How is the account model not as great as the UTXO model for privacy?
    It is not possible to send multiple outputs to different addresses, that would be hard to tell if those addresses belonged to same user or not.
    Therefore it is easier to see from what account the TX is from and to what account it is for (Account A to Account B).

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#2269

  1. More transactions can fit in a block resulting in mining efficiency and lower fees

  2. Account model not as great for privacy because, one’s transactions can’t hide amongst the outputs of a bitcoin transaction. (i.e. one output may be going to someone else, and, another one may be going back to oneself). With Ethereum, there is no outputs, just funds moved from here to there in plain sight.

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#2270

  1. It gives Ethereum better scalabitily.

  2. Because the addresses/accounts are quite easy to track, whereas UTXOs can send outputs to change addresses and it can be hard to distinguish.

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#2271
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    Because you’ll be able to fit more transactions in the blockchain.
  2. How is the account model not as great as the UTXO model for privacy?
    The account model will show exactly how much is sent in a transaction, so the public will be able to see the exact amount. In the UTXO model, you can send a transaction which divies up the amount sent to different addresses. It can be arranged to have some of the transaction amount sent back to your own account so that the public has no way of distinguishing who received however much of the original amount.
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#2272
  1. a) Because its smaller in size then it syncs faster with the whole network
    b) More data can be added to the Smart Contract
    c) More Smart Contracts fits in the block
  2. In a account model is clearly seen how much were sent to the other person and in account model you dont send UTXOs, basically you send coins not UTXOs.
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#2273

It will propragate faster within the blockchain.

The accounts involve in each transactions are visible by to the public.
you can send UTXO’s to multiple addresses but the receiving address are not visible to the public.

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#2274
  1. The account model is smaller in size and hence making the transaction quicker and lower on fees.
  2. In the account model, the transactions can be traced if send to the same account. In UTXO it is hard to track if the transactions are sent to the same user as there can be multiple outputs
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#2275 
1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
   - It lowers the requirement of the network nodes, and allows more people to participate.
   - The more decentralized the better for the security of the network.

2. How is the account model not as great as the UTXO model for privacy?
   - In Ethereum you can see exactly which account it goes and how much.
   - In BTC and you send the sum of inputs pay and can send back to your self..so it is
     are to know the recipients.
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#2276
  1. It is good because it makes the transactions faster.
  2. In Account Model, you can’t send your own money to yourself in the same transaction because of that it is easy to see where you got your coins from.
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#2277
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    Smaller transaction, less space on the blockchain, smaller fees
  2. How is the account model not as great as the UTXO model for privacy?
    No UTXOs, ETH shows balance to anyone. ETH token are less traceable therefore more fungible, but balance of ETH can be seen by anyone.
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#2278

  1. The account model doesn’t require much space as the UTXO model, why is that a benefit? It’s a benefit because more transactions can be placed on the blockchain

  2. How is the account model not as great as the UTXO model for privacy? With the Ethereum account model the beneficiaries of the contracts are known. Whereas with the UTXO the hash function on the output makes it impossible to know the recipient.

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#2279

  1. More transactions can be stored in the blockchain.

  2. Anyone can see where the money went. Sender and recipient are known.

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#2280
  1. Allows more transactions to occur. Overall, results in faster and more efficient transactions.
  2. There is only one input and output on the account model. Therefore, it is easy to track every transaction. UTXO model you can have several outputs at the same time making it harder to track the sender or the addresses.
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#2281

  1. Ethereum does not have UTXOs as it is an account model meaning that the lack of UTXO’s saves space. Ethereum just updates account balances when a transaction is completed.

  2. Account model is not as private as you can see where the coins went and come from as they are single transactions. UTXOs are many inputs and outputs and can be sent back to yourself without anyone knowing what balance you have.

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#2282

1) The account model doesn’t require much space as the UTXO model, why is that a benefit?
The transactions take up less space

2) How is the account model not as great as the UTXO model for privacy?
With the XTXO model, you can’t see who got the money as some (or all) of it can be sent to youself. The Account Model only keeps balances and it is possible to determine the recipient of money

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#2283
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?

The nodes need to store less data. Transactions are also faster.

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

When you send a transaction it is not possible to send back to your account a spare change, therefore your receiver will always be known.

2 Likes
#2284

more transactions can be made

you cant send funds to yourself and its easier to follow

#2285

  1. The account model doesn’t require much space as the UTXO model, why is that a benefit? Less space means that each block can fit more TX which means lower fees.

  2. How is the account model not as great as the UTXO model for privacy? UTXO models allows you to have multiple outputs for each transaction (including back to yourself). From the outside, it is impossible to tell which transactions are actually being sent and which ones are back to yourself.

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