Homework on UTXO vs Account Model

Ethereum 101
#2447
  1. The UTXO Model is more space saving because it has less transaction information in the blocks so the block needs less space
  2. In the account model you don’t see the exact transaction value of a transaction, it could be split in peaces
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#2448

  1. You can send more transactions. Account model takes up less space fees are smaller.

  2. UTXO model can pay out funds to multiple accounts including your own.
    Account model can be just seen from outside by anyone including amounts and recipients.

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#2449

1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
a. You can add more transactions on the block with less requirements for additional space, thus
making transactions relatively faster.

2. How is the account model not as great as the UTXO model for privacy?
a. UTXO transparency does not have a requirement for additional privacy-preserving tools,
However it makes tracking the owner of coins harder compared to the account model. Looking
at fungibility, the account model offers better privacy. This model encourages the reuse of
addresses and makes it easier for creating a transaction history for a single user.

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#2450
  1. More tx per second are possible with an account model.
  2. Because you can trace the coin`s pathway to its origin.
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#2451

  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    It is a benefit for processing transactions, you can have more transactions completed faster.

  2. How is the account model not as great as the UTXO model for privacy?
    The transaction are public on the blockchain and you can see the sending address and receive address. The UTXO model can have multiple input and outputs on the transaction making it difficult to track.

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#2452

  1. Because more transactions can be processed faster which also leads to decreased transaction fees.

  2. UTXOs can have several outputs what makes the recipient unclear , whereas Ethereum transactions don’t.

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#2453
  • The account model doesn’t require much space as the UTXO model, why is that a benefit?

More space for the smart contract codes and smart contract states.

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

With UTXO you can send to multiple addresses at once sending btc back to yourself and no one would be able to tell.

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#2454

Ethereum account model for transactions is less complex that the bitcoin UTXO model. Sums are simply added or subtracted from on blockchain accounts as opposed to combining UTXOs for the wallet to sum. Theoretically this could facilitate quicker transactions, but is likely necessary because the nodes also must process smart contract codes and maintain contract states. From what I understand about Ehtereum’s functionality in it’s present incarnation, there are issues with scalability as there are numerous applications running on the Ethereum blockchain.

The UTXO model somewhat obfuscates transactions when sums are returned to the sender as ‘change’. In the simplified transaction model in Ethereum these very straightforward transactions as exchanges between accounts on the blockchain are very transparent.

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#2455

1 It makes smaller transactions and thus the higher throughput
2 Account model use simple math to determine the account holdings

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#2456
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    There is less data going into the block meaning more transactions can be included
  2. How is the account model not as great as the UTXO model for privacy?
    Less privacy, txns cant go to yourself so your balance is always visible
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#2457

The account model has an overall smaller transaction size, this due to the fact that the account model is not tracking all prior inputs and outputs of a transaction like the UTXO model uses. The account model allows for more transactions to be mined in a single block and making processes be faster for each transaction as well as cheaper in terms of transaction fees.

In the UTXO model, there are multiple unspent transactions generating multiple outputs, making it hard for people to track which address is the senders. This can make UTXO transactions harder to track as the multiple addresses could be for the receiver of the transaction or the receiver and the sender.
In the account model, one transaction is completed with one address at a time and these are easily viewed publicly on the blockchain. You can see the account address and know exactly how much is in each address.

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#2458

  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    This allows more room for transactions to be stored for less memory, which increases the availability of people who can participate.

  2. How is the account model not as great as the UTXO model for privacy?
    The UTXO model has changes in addresses when you view the transaction whereas with the account model the transaction goes straight from one destination to another, completely visible and easy to track.

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#2459

  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?

  3. The benefit is that blocks can then include more transactions. This enables greater scalability of the blockchain. This is useful for Ethereum as it requires greater memory for its blocks.

2.The account model does not keep things private as it is a visible record of exchange. Exchanges are on an aggregated balance structure with parties readily identifiable. By contrast the UTXO model is based on individual outputs and inputs making it harder to track both parties of the exchange.

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#2460

  1. a) More transactions can be stored in a block.
    b) The transaction progress is faster.

  2. The UTXO model can combine multiple outputs in one transaction so it is difficult to determine the exact amount of money that was send to each output. The Account model uses one transaction at a time which makes it clear for the observer to see exactly how much money were transferred.

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#2461

  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    It is easier to express in code, and it doesn’t store UTXOs which makes the transfers quicker and more fungible. Many more transactions can be saved in a block.

  2. How is the account model not as great as the UTXO model for privacy?
    Looking at the Bitcoin blockchain from the outside, it is impossible to tell which transactions are being sent to whom. For example, I can initiate a transaction where I send some bitcoin to three different addresses, and all those addresses are owned by me, but there is no way to know that from simply looking at which addresses that bitcoin change was sent to. In that sense, the UTXO model is better for privacy given the nature of the model.

#2462

  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    More TX’s can be included in the block. This fact makes TXs faster and more cost-effective.

  2. How is the account model not as great as the UTXO model for privacy?
    In the case of Bitcoin, a new address can be used for each transaction. And since change is often sent back to the sender, it is near impossible to know which address corresponds to the sender and which one to the receiver.

With Ethereum, every account is public, and therefore, the origin and destination of a TX is also public.

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#2463

1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
The space saving is a big benefit. More transactions and smart contract code can fit on each block which is crucial for the congested Ethereum network. The account mode stores just the balances of each transaction and not the UTXOs and this allows for smaller blocks and faster processing.
2. How is the account model not as great as the UTXO model for privacy?
Transactions on the Ethereum network (account model) are far more traceable and less anonymous than the UTXO model uses on the bitcoin network. The amounts and destinations of transactions can be viewed by anyone.
The UTXO model can combine transactions so that one transaction can send funds to multiple parties at the same time.

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#2464

[quote=“filip, post:1, topic:8445, full:true”]
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?
  • Having a small space is definitely a benefit in a blockchain, so then we can put more transactions per block
  1. How is the account model not as great as the UTXO model for privacy?
  • You cannot send funds to yourself unlike in the UTXO model. So UTXO model adds a bit of visual complexity to the chain.
2 Likes
#2465
  1. The account model doesn’t require much space as the UTXO model, why is that a benefit?
    It is a benefit because fees are smallers, transactions propagate fater
  2. How is the account model not as great as the UTXO model for privacy?
    It is easier to see balances and transactions in BTC it is difficutl to determine the exact recipients of the transactions, in the Ethereum blockchain there is more transparency therefore it is easy to track transactions
1 Like
#2466
  1. It requires less processing time which makes it quicker.
  2. Transactions can be easily tracked.
2 Likes