Homework on UTXO vs Account Model

Ethereum 101
#2346

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?
This is beneficial because it means more transactions per block and more room for smart contract code.

2. How is the account model not as great as the UTXO model for privacy?
The account model is not as good as the UTXO model in terms of privacy because the transactions are easy to track down. It is simply a transfer from one account to another account, whereafter the accounts get updated.

The UTXO model can combine transactions to multiple adresses, including your own adress, at the same time. Somebody viewing the transaction at the blockchain can not easily see if the recipients are different people or the same people with different adresses, or perhaps just yourself or a combination of the above.

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#2347

  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    Blocks are much smaller in size, easier to and less expensive to get an account balance

  2. How is the account model not as great as the UTXO model for privacy?
    Easily see the account of where the ETH resides, where as UTXO model has several spends to addresses and not as easy to determine who owns the addresses

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#2348

1- Less space, more transactions can be included in a block
2- It is possible to track the address of who has been paid, wherein the UTXO model there isn´t a way to know that information

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#2349
  1. account model can store more transactions, its not so complicated as with UTXO’s
  2. you cannot sent funds to yourself and you cannot track each single coin, just transfer
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#2350

  1. using less data on UTXO’s, allows more programming code to be written into a smart contract. Also makes them fungible.

  2. you can trace a UTXO all the way back to the miner of a Bitcoin. However, Unspent transactions are split to an additional address making tracking more difficult.

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#2351

  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    It is a benefict because more transactions are stored in the blocks, making the network faster.

  2. How is the account model not as great as the UTXO model for privacy?
    UTXOs are more private than the account model because even though every transaction is traceable to its provenance, being able to have multiple outputs makes it more difficult for the public to know who controls the addresses involved.

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#2352
  1. Less data on the Blockchain means quicker transactions as they are smaller, less fees. node file smaller.
  2. Cant Code is publice, accounts balances are public, easier to see expenditures and reciepts
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#2353

  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    In the Account Model there is no input nor output (no UTXOs), which reduce the size of the transaction. Thus, you can store more transaction in the blocks.

  2. How is the account model not as great as the UTXO model for privacy?
    You can’t track each single transaction in the ETH blockchain.

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#2354
  1. The extra space might be used for other useful things - as the language is Turing complete.
  2. With UTXO you can send 10 BTC to someone and then 10 BTC to yourself in one single transaction, and there will be no way to tell from the outside that you did that. In the account model, you can see exactly who you sending the money to and how much, you can’t send money to yourself.
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#2355
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    Smaller transactions require less space so they require less time to execute which results in smaller fees.
  2. How is the account model not as great as the UTXO model for privacy?
    Because in the Account model the code is public and since they contain balances they are also Public.In the UTXO model it can pay out to multiple Wallets using wallet addresses. You can therefore pay Coins to yourself using a wallet address created for that purpose. Making it harder for the “PUBLIC” to track these transactions…
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#2356

  1. Transactions will be smaller and with less fees. You can fit many more in a block which determines faster speed aswell.

  2. In UTXO model you can trace every single coin individually because of the I/O system, while in ETH you are working on account transfers so your balance on a certain wallet is visible by everyone.

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#2357
  1. It makes more room for the other things that go into the blocks/smart contracts.
  2. With the account model we can see exactly what was sent and the addresses of all participants.
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#2358
  1. It is a benefit because you are able to put more transactions in to the block and that makes transaction cheaper.
  2. Because you can see exactly where the transactions are going
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#2359
  1. takes up less space on blockchain allows for faster transactions and, conceivably, lower fees
  2. UTXO model tracks every move every piece of a coin has made where account model only tracks transfers of funds in general
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#2360
  1. The account model doesn`t require much space as the UTXO model, why is that a benefit?
    More transactions can fit in one block
  2. How is the account model not as great as the UTXO model for privacy?
    Because you cant hide your transactions with fake transactions, meaning you cant do multiple transactions at the same time and maybe some of those transactions are going back to you and from the outside no one can tell which transaction is the real one.
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#2361

  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    It makes it faster and possible to build longer blockchains.

  2. How is the account model not as great as the UTXO model for privacy?
    You can track addresses of who has sent money to who, whereas in the UTXO model it is more difficult as there are multiple transactions at once.

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#2362

Answers:

  1. It’s a benefit that the Ethereum account model doesn’t require as much space as the Bitcoin UTXO model because the space is need for smart contract code, data regarding the 3 possible states of each contract, a well as, basic transaction details;
  2. The account model is not as great for privacy as the UTXO model because with UTXO you can send transaction to multiple recipients, in a way that it’s not possible to know which recipients has received what amount of BTC. With the account model you can not have multiple recipients for a transaction, so it is clear who received it and how much they received.
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#2363

  1. This is a benefit because it means there is less to track, making blocks smaller and keeping the blockchain at a more manageable size.

  2. The account model is not so great for privacy compared to the UTXO model because it simplifies tracking of transactions and accounts. Transactions have a level of obfuscation in UTXO because it is difficult to know who owns the various target addresses involved.

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#2364
  1. The simpler, quicker account model leaves more space for the nodes to execute the smart contract with the code and the state. Ethereum is also more fungible, since we do not distinguish between coins.
  2. The account model is less private. Anyone can see how much money was sent to whom.
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#2365

  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    The account model only stores the balance of transactions and not each UTXO as the UTXO model does. This reduces the size of the blocks and makes the network run faster and more efficiently.

  2. How is the account model not as great as the UTXO model for privacy?
    It allows you to see where from and where to each transaction has gone. So theoretically is all trackable whereas the UTXO model can have multiple inputs and outputs making it more private as it is harder to track transactions.

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